Hard Money Loan Brokers and Wholesalers

Commercial Hard money loans are a method of funding that is done against the property that you will purchase. Commercial hard money loans can be used as a short-term funding until the property is constructed.

last updated Wednesday, May 17, 2023
#Commercial Hard Money Loans #Brokers and Whole-sellers

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John Burson

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Commercial hard money loans wholesalers

These are lenders who offer loans over several ways of representation. They hardly intermingle with the general public. Some even have marketing banks as a portion of their business structure. Some commercial hard money loan wholesalers have agents, for instance, communicators, who communicate with clients for loan procedures.

The correspondents and the bank handle sourcing the commercial hard money loan. What they do is that they take your loan application, countersign it and then conclude the financing. The commercial hard money loan is approved by wholesale lenders who regularly wholesale loans to other lending organizations. Therefore, your mortgage could change hands even after it is approved.

Gain access to a wholesaler through a broker.

You decide to choose a mortgage broker to obtain access to a wholesaler. The agent will work for you. On the other hand, the correspondent will work for the commercial hard money lender itself. You can be presented with choices for a figure of various wholesale moneylenders to select from by your broker. The dealer will also give you some recommendations in making your ultimate choice. The primary job of the broker is enabling the contract of your choice. However, you still have the authority to select which lenders to choose.

Pros and cons of direct to a lender

Using a correspondent will give you access to precisely one mortgagee. From there on, you can actively discuss fees and costs concerning your loans. The correspondent is a direct connection to the commercial hard money lender. Some borrowers reason that using a commercial lender will reduce the closing cost. Well, the fact is that all loans have a comparable closing price.

Pros and cons of brokers

Using an agent allows you to shop around for your loan more, giving you several options. After finding the lender of your choice, the broker may not have negotiating power compared to the correspondent. Therefore, you are likely to face more inflexible terms and charges.

 
 
 

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