As a mortgage broker, you know how crucial it is to offer a wide variety of funding options to your clients. But what happens when traditional bank lenders can’t provide the financing your clients need for certain real estate projects? Whether your clients are looking to invest in fix-and-flips, rental properties, or new construction projects, there’s an alternative solution—Hard Money Loans.
Partnering with a hard money lender can provide you with more financial solutions, allowing you to offer your clients more options. These private loans are not only flexible but also allow you to earn additional referral fees, boosting your income while helping your clients secure the funding they need.
What Are Hard Money Loans?
Hard Money Loans are short-term, asset-based loans typically used in real estate transactions. Unlike traditional bank loans that focus on a borrower’s credit score, hard money loans primarily rely on the property’s value, particularly its after-repair value (ARV). This makes them ideal for real estate investors who may not meet the strict criteria of traditional banks but have a profitable project in mind.
These loans are a game-changer for mortgage brokers. Instead of losing a potential deal because a client doesn’t meet the criteria of conventional lenders, you can turn to hard money lenders, which allow you to offer a wider range of funding options. In addition, hard money loans are processed much faster—typically within 7 to 15 business days—making them perfect for fast-paced real estate deals.
Why Should Mortgage Brokers Care About Hard Money Lending?
By incorporating hard money lending into your offering, you open the door to a whole new set of deals, including those that traditional banks would never consider. Here’s why hard money lending can be a powerful tool for you:
- Fix-and-Flip Projects: Real estate investors often buy distressed properties, renovate them, and sell them for a profit. With hard money loans, you can help your clients fund these projects quickly, and earn referral fees when they close.
- Investment Properties: These properties, used for rental income, can be single-family homes, multi-family units, or even commercial buildings. You can help your clients secure funding for these properties, providing them with more options than traditional banks.
- New Construction: Hard money loans are ideal for clients who want to build new homes, whether for sale or rental purposes. This opens up another avenue for you to offer value-added services to your real estate clients.
Pros and Cons of Hard Money Loans
Understanding the benefits and limitations of hard money loans is essential for offering them to your clients:
Pros:
- Flexible Loan Amounts: Hard money lenders base loan amounts on the after-repair value (ARV) of the property, not just the purchase price. This often means your clients can get higher loan amounts.
- Faster Funding: Funds can be available in as little as 7 to 15 business days, helping you close deals quickly.
- Less Documentation: Hard money loans often require fewer documents than traditional bank loans, making the process fast and smooth.
- Lower Credit Score Barriers: These loans are ideal for clients with less-than-perfect credit, making them a good option for real estate investors who have faced financial setbacks but still have profitable projects.
Cons:
- Higher Interest Rates: While the loan terms are flexible, interest rates are higher than what traditional banks offer.
- Shorter Loan Terms: Hard money loans are typically short-term (usually up to 36 months), so they’re best suited for projects that will be completed in that time frame.
- Higher Fees: While they are faster to process, the fees associated with hard money loans can be 2-3 points higher than conventional loans.
How Mortgage Brokers Can Benefit Financially
Partnering with GL&L Holdings as a mortgage broker allows you to tap into the lucrative world of hard money lending. Through our client referral program, you can earn referral fees for every deal you send our way. This provides an opportunity to grow your income by offering your clients a broader range of financing options.
Referral Process and Fees
Here’s how the referral process works:
- Register: Sign up here to become a GL&L Holdings broker partner. This simple process gives you access to our hard money loan programs.
- Refer Clients: If you have clients interested in real estate deals like fix-and-flips, investment properties, or new construction, refer them to us. We’ll guide them through the loan application process.
- Loan Processing: With your assistance, your client submits the necessary documentation, and GL&L Holdings processes the loan in 15 business days or less. We’ll keep you updated every step of the way.
- Referral Fees: Once the loan is funded, you’ll receive a referral fee for your efforts. It’s that simple!
By incorporating hard money loans into your services, you can offer more value to your clients, build stronger relationships, and increase your earning potential—all while expanding your client base.
Enhance Your Service Offerings as a Mortgage Broker
As a mortgage broker, providing more funding options to your clients is key to standing out in a competitive market. By partnering with a trusted hard money lender like GL&L Holdings, you can increase your value proposition and establish yourself as a go-to expert for real estate financing.
Not only will you meet your existing clients’ needs, but you’ll also attract new clients who are looking for financing options beyond traditional banks. The ability to offer a diverse range of loan products, especially for non-owner-occupied properties, opens up many new business opportunities for you.
Referred Client Retention and Process Transparency
One of the key benefits of partnering with GL&L Holdings is that we maintain transparency throughout the process. You won’t lose your clients to us. You’ll continue to work with them after the loan has been processed, and we’ll keep you in the loop every step of the way.
We’re committed to ensuring smooth transactions and building lasting relationships with both mortgage brokers and their referred clients. This transparency and collaboration create a strong foundation for long-term partnerships.
Conclusion
By partnering with GL&L Holdings, you can enhance your services, increase your income, and build stronger client relationships. Hard money loans provide a flexible, fast solution for real estate investors, and as a mortgage broker, you can take advantage of this growing market.
Ready to start earning more by offering hard money loans to your clients? Register with us today and open new opportunities for yourself and your clients. Whether they need funding for a fix-and-flip, an investment property, or new construction, GL&L Holdings has the right loan products to help them succeed.
Call us at 832-770-9415, email us at info@gllholdings.com, or register as a broker partner through this link. Expand your business and boost your income today.
