If you’ve been in the business of hard money lending long enough, then you would agree that many clients can be gotten off both residential and commercial real estate agents. More often than not, these agents find themselves in business with clients who are experiencing difficulties in obtaining loans from traditional financing institutions. Sometimes, it could be down to poor or low credit score, they could be trying to purchase real estate not considered to be in good shape, or it could be that they are unable to get the funds as quickly as they would have wanted it. In these cases, the real estate agents would then point such clients in the direction of hard money lenders. Let’s look at each of these scenarios one after the other.

The Credit Score Challenged Borrower

More often than not, these are the category of clients most often referred to the hard money lenders. However, the credit-challenged borrower is not always about a low credit score. Sometimes, it could be that they are self-employed real estate investors who perhaps cannot display consistent income, who may not be able to show high-level credit or cannot show credit at all.

The Borrower Whose Real Estate Is In Poor Condition

This is another category often referred by real estate agents to hard money lenders. They might be interested in the property to renovate and sell or hold as a rental. A conventional lending institution would refuse to fund the project due to the state of the property. Hard money lenders have their ways around these things, so it’s often not a major concern.

Click here to find out more about the referral relationship between real estate agents and hard money lenders.


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