For mortgage brokers, the odds of needing to deal with private lenders (hard money lenders) at some point during a future search for a loan are becoming greater by the day. Unfortunately, outside of real estate professionals that deal with hard money lenders on a regular basis, very few individuals are skilled at communicating and selling these lenders on their credit-worthiness. The result is a bag of mixed responses from private lenders and a lot of frustration on the part of both mortgage brokers and their clients. 

There's a need for better communication from both brokers and private lenders moving forward, but here are a few tips regarding how you can ensure that your loan requests are given the attention that they deserve by the lenders that review them...

Communicating With Hard Money Lenders

Despite all of the financial turmoil in the world, there are still loans to be made and there are still hard money lenders out there that are willing to make them. Deals are getting done, borrowers are getting the funding that they need, and investors are optimistically approaching hard money lending as today's failsafe investment vehicle. What most people don't understand is that the rules of the game have changed - investors still want to make loans, but they're doing it in a way that relies much more on logic than on metrics and credentials.

So what is it that makes the difference between a loan scenario that's worth your time and a loan scenario that isn't? Knowing these basic parameters will save you hours of otherwise wasted time in dealing with hard money lenders:

Hard Money Lending Runs on Logic