How to Build a Relationship With A Hard Money Lender

Building a relationship with your hard money lender is a crucial part of your loan approval process. A hard money lender is typically a private individual or a business backed by private capital. A hard money lender is willing to cut through the red tape traditional lending institutions require and is often willing to take a risk these big banks won’t. What they require of you is to pay back the loan on time with interest. Here are some ways to invest not only in your future profit but in your lender as well.

Be Exciting. Present them with solid and beneficial investment opportunities. Don’t waste their time with pet projects or unrealistic schemes. Develop strong strategies which will profit you both. Keep their interests peaked with new ways to build a profitable business or real estate venture.

Be Honest. Lay everything out on the table for them to evaluate on their own. The information should all be clearly displayed and understood. Respect their intelligence and the choices they make. Help them to evaluate the investment by being absolutely truthful and gaining their trust.

Be Prompt. Once the hard money lender has put down the capital, be prompt in your payments. Investors need to get their payment in order to run their own businesses and lives successfully. Respect the risk they made with you and pay them on time. Nothing will ruin your relationship faster than a tardy payment.

Be a Student. There are many times a hard money lender has experience and wisdom you sorely need. Acknowledge this by involving them in your business ventures. Ask their advice and apply it well. The more successful you are, the better his investment will be. It’s a win-win situation to learn from a hard money lender who is willing to teach.

Be Loyal. Continue to use them as a direct lender. Over time, you will hopefully develop a strong partnership which will lead to celebrated commercial success for both of you. You’ve established their trust and proven yourself to be a reliable customer. The groundwork has already been laid for a great relationship together.