Hard money loans play an important role in the real estate marketplace. They offer financing to those who otherwise would be without access to such credit, and they finance short-term borrowing needs with a quick turnaround. Conventional loan officers that refer that business to Cushner Capital Group will get two fees. One for the interim financing, the other, when they get back to conventional qualification.
That is why the referring loan officer needs to maintain a relationship with such clients and track their deals. When a hard money loan is approaching its maturity date, an opportunity exists for that loan officer to handle refinancing for the client and earn another fee.
We at Cushner Capital Group make it a point to respect and protect your client relationship. We will always try to let you know when the interim hard money loan is due, so that you can contact the client to initiate the refinance.
As Ted Kapnak, writer with Entrepreneur magazine wrote about the relationship between hard money broker, loan officer and borrower, “There are times when long-term property owners need short-term hard money deals. Either they need an ultra-quick closing, or more traditional financing is not available to them because they are suffering through cash-flow or credit issues. This is where hard money loans come into play. For this borrower, the broker or LO needs to place the transaction with a lender that best meets their client’s needs and can deliver in a timely fashion.
As the broker, you need to know when it’s time to approach a lender to assist a client in refinancing out of a hard money deal. This concept of a “second bite at the apple” also can apply to rehab loans that are originated through a hard money lender. If a property is rehabbed and stabilized with funds from a hard money lender, there is an opportunity for the broker or Loan Officer to line up long-term permanent financing.”
Trusting your client to another lending source can be worrisome. We are incredibly humbled and grateful for your business. We treat your client with the highest amount of respect. Please keep Cushner Capital Group in mind for any of your hard money or non-QM deals. Please call Michael Cushner of Cushner Capital Group @ (760) 845-9035 today! DRE#00865708 NMLS#305266
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