Hard money lending can become relationship lending
Building a track record can make a huge difference….
Once you have successfully borrowed money, met the terms, and paid the loan back to a lender, you have started to build a relationship.
Why does this matter? In our case, we’re as much about relationship lending as we are about the equity in the property. So borrowers who are meticulous about making interest payments on time, meeting their commitments as to construction and lease up schedule, and paying off the loan as scheduled can get better terms and rates than new borrowers. In some cases, the LTV can be higher and the cash in requirement can be lower.
Here are some points to remember when working with us:
- On time payments are exactly that: on time. You may have a grace period before a late fee is assessed, however, if you want to make an impression, send your payment early. Small hard money lenders notice these early payments.
- Stick to the construction schedule, and if there are delays, communicate with the lender. Your lender is in effect your partner in the deal. His money is at risk, and good communication goes a long way.
- If your exit strategy is to refinance and hold, start your refinance process right away. It can take a long time to get conventional loans approved these days. Waiting until 30 days before your hard money note is due is a sure fire way to go beyond the term of the loan and incur penalties.