Why Mortgage Brokers are so Important for a Hard Money Lender

Why Mortgage Brokers are so Important for a Hard Money Lender

The mortgage broker community is the greatest lead source for hard money lenders. Over 75% of the residential and commercial hard money loans that TaliMar Financial closes as a private lender were initially referred to us by a mortgage broker. The reason mortgage brokers are such a great referral source is because they are connected to a vast number of borrowers and real estate agents.

Why are Mortgage Brokers So Important

When a borrower first contacts a mortgage broker, the broker provides the client with several conventional financing options based upon certain borrower requirements. However, there are circumstances where a borrower may not meet the guidelines for a traditional home or commercial loan and therefore would only qualify for private financing. In these cases, mortgage brokers turn to hard money lenders. Since the mortgage broker has already developed relationships with the private lending community, they can often place that loan in a short amount of time.

Examples of Broker Referred Loans

We recently funded a $715,000 hard money loan for a real estate investor that owned several rental properties in San Diego, CA. The Borrower was looking to purchase additional properties and because of the complexity of their income, they were unable to obtain financing from a conventional lender. The mortgage broker referred the client to TaliMar Financial after having the loan file initially denied by a conventional lending source. TaliMar Financial funded their bridge loan in less than 5 business days.

Another example of a private money loan referred to TaliMar Financial from a mortgage broker was the $1,500,000 refinance of an elder care facility. The elder care facility was operating out of a single-family home. The original hard money loan secured on this property was maturing and the Borrower had less than 30 days to close. The borrower did not qualify for a conventional home loan because the property was being used as a business, but they also did not qualify for a business loan because the business was being operated in a single-family home. As a private lender, TaliMar Financial was able to fund the $1,500,000 loan request for the mortgage broker and close prior to the maturity date of the Borrower’s original hard money loan.

The last example of a broker referred private loan was a $284,000 ground up construction loan in Wilmington, CA. The mortgage broker had always been focused on funding conventional loans. Since the mortgage broker had little experience with ground up construction loans, she contacted TaliMar Financial requesting some options. After an initial discussion, we were able to provide the broker with solutions for their client. Within 30 days, the borrower started construction on their property.

Conclusion

As a hard money lender, we rely on the mortgage broker community. With many of our leads coming from mortgage brokers, we work hard to structure hard money loans around the needs of their clients. By working together, mortgage brokers and hard money lenders can assure Borrowers that there will be a solution to their financing needs, whether it be a bridge loan to refinance their maturing loan, funds to complete a fix & flip, or financing for a ground up construction project.

About TaliMar Financial

TaliMar Financial is a hard money loan in San Diego, CA. Since 2008, TaliMar Financial has been the preferred hard money lender for residential and commercial Fix & Flip, Construction, and Bridge Loans. Contact TaliMar today with your hard money loan request at (858) 613-0111 or visit talimarfinancial.com to learn more about our private lending options.

 

About the author

Brock VandenBerg is the President of TaliMar Financial.