Using a broker to secure a hard money loan for your business might not be what you think. Traditionally, borrowers steer away from a broker because they want to avoid the perceived fees that come along with such services. But this might not always be the best choice.
Sure, many brokers will charge a small fee to do the leg work that a borrower will normally have to do for themselves, but they also have a great deal of experience hunting down and negotiating loans. Borrowers often have very little, if any at all, experience do this and might not have the ability to know when a loan is not going to be in their benefit. A broker will be able to identify when a Texas Commercial Loans is structured in a way to take advantage of the borrower or when the terms are unrealistic.
Another benefit of using a broker is that they are familiar with the agencies and personalities associated with Texas Commercial Loans in your area. They will know exactly who to talk to not only expedite the process but also to cut through the red tape and get you the best possible rates. These personal connections within the industry are something that no borrower could ever hope to achieve on their own.
In fact, many lenders appreciate the use of brokers, as it greatly cuts down on their work load as well. Lenders do not want to spend any more time on a loan than they absolutely have to. It is simply not cost effective. Lenders are looking to process as many loans as quickly as possible. That is what makes them the most money in the Texas Commercial Loans game. And this is where a broker can provide a tremendous advantage. Not only are they able to ease the burden and workload for the potential borrower, but they also make it easier for the lender. Brokers know the process and requirements much better than borrowers, so a broker requires much less hand holding than borrower. This translates to an easier process for the lender.
If you decide to go with a broker, it is better to look at the big picture. A broker might cost you money, yes. However, you have to look at what a broker will save you when it comes to a Texas Commercial Loans. First, a broker will undoubtedly save you time. You will have to provide all of the correct financials that are needed for the application process, but a broker will take it from there. They will be able to hunt down multiple offers for your loan in a fraction of the time. Brokers will also save you on stress. Part of the loan process is knowing where to go and who to talk to. Brokers have that knowledge on hand. You will no longer have to do that leg work. And finally, brokers are going to be more likely to secure you a better rate and terms. They work with lenders every day and are going to be saving the lenders time and energy as well. This could easily translate to more favorable terms for the borrower. So while it might cost you to use a broker, if you look at the big picture, in the long run, you might actually be saving money.
Level 4 Funding LLC Private Hard Money Lender
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701
About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.