1. Understand your client’s goals. Some lenders may not take the time or make the effort to give hard money loans to people who don’t fit exactly the mold they’re looking for. Make sure you bring your client to a lender who can offer the best hard money loan that matches your client’s needs.
2. Creative lenders are your key to success. Look for lenders who are able to work outside the traditional lending matrix. Your clients are looking to you to offer them a solution that they may not be able to get from other lending sources.
3. Honesty is still the best policy. Find a lender who can deliver on his promises, not make excuses. A lender who tells you he’s honest is suspect. You want him to show you what he can do because if he can’t deliver it’s you who will look dishonest to your client.
4. Cultivate a relationship with as many hard money lenders as possible. Different lenders may offer different solutions when it comes to environmental issues, terms, market conditions, etc.
5. Show flexibility and resolve. The client is willing to pay your commission to get a hard money loan because he has confidence that you can get him the best rate, close the deal quickly, and complete all the paperwork with the lender. He wants a finished package that lets him sign on the bottom line.
6. Ask yourself: Does the lender let you add residential and commercial hard money loans so you can grow your business? Many clients, looking for a long-term relationship with their broker, want to know he’s able to handle all their business.
7. Due diligence. Make sure the points are paid at closing from proceeds.