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Smart Mortgage Pros Pursue Alternative Lending To Close Loans

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Alternative lenders are radically different from banks. Most are privately funded and therefore have greater latitude to structure a loan that works for the client. Hard-money lending is quite different than conventional lending.

A hard-money lender focuses heavily on the loan collateral as opposed to the borrower’s credit score, financial stability, debt ratio, job status or other factors that impact that borrower’s ability to repay the loan.

Editor’s Note: Smart mortgage brokers need to learn to be adaptable after the bank shuts their loan down, hard money lenders are less trouble to work with and the money comes quicker. In warning mortgage professionals how to avoid a bad lender, Glen Weinberg helps good lenders see the importance of being one of the many good guys and keeping a good name in the business. We are all "Googleable", Glen gives great tips on looking up info on a lender to first see if he actually is the lender or just a broker playing the role.

Secondly, he details how to dig up any dirty deeds a scrupulous lender may have done in the past. The alternative lending market is fruitful and it pays to stay clean and do things the right way. That's where the long money is. Follow these 6 rules to close hard money loans when the bank says “no”:

  • Research and fully understand the transaction.
  • Qualify the deal.
  • Identify the lender.
  • Find the best deal.
  • Fully commit to the deal.
  • Execute and close.

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Peer to Peer Lending and Private Lending Info