As a mortgage broker, you are working on your borrower’s behalf to find the best loan for their unique situation. This means you’re going to want to have a wide variety of lending partners to match with your borrowers.
One of these partners should be a hard money lender. Hard money lenders can offer borrowers in various situations the flexibility and freedom of a loan that doesn’t scrutinize their credit score, tax statements, and earnings, but instead looks at the overall merit of the deal above all else.
Discover the benefits of having a hard money lending partner, how to find the right one for you, and what to expect when working with these valuable hard money lenders.
What is a hard money lender?
Hard money lenders are private lenders or investor groups that provide hard money loans. These types of loans are commonly used by borrowers who need fast, flexible loans, such as investors or house flippers, but they can suit a wide range of unique borrowers.
Types of borrower situations that are ideal for hard money loans include:
- Self-employed borrowers
- Business owners
- Multi-family or investment properties
- Bridge and new construction loans
- Consolidating debt and cleaning up credit
- Remodeling your home or acquiring a home in poor condition
- Those with large amounts of home equity
- Purchasing a primary residence or refinancing
- Acquiring a second, third, or fourth mortgage
- Paying a legal settlement or settling a divorce
- Dissolving a family trust
- Paying off bankruptcy
- Getting out of a foreclosure
While hard money loans are usually short-term and paid off in one to five years, Marquee Funding Group is unique in that they are one of the only hard money lenders in California that also offers long-term consumer loans ranging from 10 to 30 years, with fully amortized payment options.
For borrowers in unique situations, getting a loan through traditional means, such as from a bank, can be difficult or even impossible. Traditional mortgage lenders need to see a lot of documentation for approval, but with a hard money lender, this isn’t the case.
Deals can be closed in as fast as seven days, with same-day approvals. And when brokers develop a strong working relationship with a hard money lender, an already smooth process becomes even smoother.
How to find the right hard money partner
Finding the right hard money lender partner for you is built from trust, honesty, and transparency. You’ll want to know the types of experience, track record, and portfolio your hard money lender has, and they’ll want to get to know you, too.
The relationship between a hard money lender and broker has to go both ways. Marquee Funding Group is proud to be the ethical standard of the hard money loan industry. Not all hard money lenders are the same, but our team has made it our job to be as efficient and clear as possible throughout the entire process.
The Marquee Funding Group team will do its part — it’s up to you to be as transparent and straightforward on your end of the deal. Creating this foundation of trust will guarantee many successful deals to come.
Benefits of using a hard money lending partner
Hard money lenders can make excellent, valuable partners, and open up a new world of opportunity for your customers with unique situations that banks have deemed too difficult or problematic.
The greatest benefit of hard money lenders is the quick turnaround. This makes it ideal for your customers who need large amounts of money fast in order to take advantage of lucrative deals.
It’s also helpful for customers who need to clean up credit or pay off legal settlements or bankruptcies so they can move forward more quickly.
Decisions based on common sense
With hard money loans, terms are negotiated between you and the lender, and they are based on common sense and the value of the deal above all else. If it makes sense, a hard money lender will do it.
A common-sense approach gives opportunities to those who are out of options with poor credit or a non-traditional past. It can provide a second chance — as long as their deal makes sense to the lender.
In creating your relationship with a hard money lender, you’ll learn exactly what they need and how they need it. Hard money lenders don’t require much documentation from your customers, since their deals are based on common sense.
But what they do need is essential to the deal.
What to expect when working with a hard money lender
What Marquee Funding Group wants to know is simple: the subject property address and a short submission story that briefly notes the borrower’s situation, plan, and exit strategy. You can complete this loan scenario first, which asks for:
- Property type
- Purchase or refinance
- Owner or non-owner-occupied
- Desired loan position (First, second, third, etc.)
- Borrower amount
- Customer credit score
Marquee Funding Group understands the urgency broker’s face to get your customer’s deals done. We aim to simplify the deals that are challenging for traditional lenders, so that we can create more opportunities for you and your customers.
We also offer:
- Owner-occupied or non-owner-occupied consumer or business purpose loans
- Loan amounts from $50,000 to $20 million
- Single-family, multi-family, commercial, industrial, construction, and land loans
- Purchase money, rate-and-term refinance, and cash-out refinance options
- Loan-to-Value up to 70% (deal specific)
Contact our team today to have us quickly review your customer’s situation and get the deal moving.