Personal hard money lenders are in the business of providing loans and loan services to the people who require hard money loans (loans collateralized by real house. ) Private hard money lenders may be immediate hard money lenders or brokers of hard money loans. Most private hard money lenders are, in actuality, brokers. Some private hard money lenders are both brokers and immediate lenders. In these situations, the private hard money lender generally funds one or up to a few small loans every year and serves in the broker capacity to clients for the lending options they assistance to originate. Moneylenders In Singapore
Determining on whether to work alongside a hard money broker or a private hard money lender is similar to deciding on whether to get real estate with the help of a broker/agent or whether to make an offer direct to the seller on your own.
The features of working directly with a true private hard money lender are immediately evident: You may sometimes save money by going direct. Agents are paid for their services by way of a percentage of the points you pay on a hard money loan. Therefore, the greater broker agents involved in a package, a lot more you are likely to pay in both points and percentage to support that cost.
If you have selected an immediate hard money lender who is a good match for your project, you will be able to talk directly with the decision makers, avoiding the ‘run around’ that so many hard money debtors fall prey to. You are told that your loan is going through, only to hear the next day that the lender has elected to never take on your hard money loan and now your loan is on another desk in yet another direct lender’s office – or worse, on the desk of another broker who may know a broker who is aware of a lender who may choose to fund your loan. Often, the choice of immediate lender is located more on the commission the broker will get than on your best interests.
Simply by working with an immediate hard money lender, you can enough time ‘run-around’ and may be able to close more rapidly. Following all, no-one knows your situation like you do, no person can describe any circumstances better than you can, and no-one is as committed to your business and your hard money loan as you are.
The good thing about working with a commercial mortgage broker is also clear: a seasoned, well-informed, honest commercial mortgage broker will have the knowledge of and use of the direct hard money lenders in Ontario, Canada, and the Combined States. A commercial large financial company will know where your loan has the best fit. A good commercial mortgage broker will help you ‘package’ your loan to your best advantage, helping you determine how much to anticipate based on the collateral in your property, type of property you are collateralizing, how soon you need to close the deal, and even more.