Commercial Magazine

Take a Local Approach to Hard Money

Faster response times and specialized knowledge are reasons to stay close to home

By Steve Bond

There are a lot of options when looking to get a hard money loan for a fix-and-flip or rehab project. Commercial mortgage brokers can feel overwhelmed in knowing who to trust and where to go to find the best option for their clients.

It’s easy to choose or partner with a national lender because of their excellent programs and extensive reach. Arranging a hard money loan through a local partner, however, may be the better option in many cases. A local hard money lender is someone who lives close by, can be on-site within a few hours and can meet clients face to face. Unlike national lenders that deal with everything via fax or phone, local lenders can be there in person to help your client along the way.

Local hard money lenders are not affiliated with any banks, and they only lend in a handful of states. There are four key reasons why choosing to work with one of these specialty lenders is the right option for a commercial rehab or fix-and-flip project. These reasons include the lender’s speed, extensive knowledge, varied partnerships and valued support.

Need for speed

The first key reason to choose a local hard money lender is for their speed. A local lender lives in or near the area, and can quickly and easily visit properties. They personally inspect properties and respond to draw requests within hours. This means that you and your client can get started on a project sooner.

National lenders may slow down the process because they need to send out third-party companies to inspect properties. Local lenders can start projects within a few days and can usually give their clients the money on scene after draw inspections.

Speed can be a crucial component to obtaining the highest return on investment. Having a local hard money lender close to the property and, potentially, on scene within hours is the best way to complete a project efficiently and effectively.

Knowledge base

Another key reason to choose a local hard money lender is their extensive knowledge. They typically have a deep understanding of the market, its sales potential and the best times to sell.

Using this data is one thing, but having the intimate knowledge of the area is another. Local hard money lenders have watched the market fluctuate over the years and continued to invest. They should have a lot of experience with various project types and can correct mistakes before they happen, which will help maximize return on investment.

“ A local lenders’ individualized support will ensure success while maximizing the return on investment for any fix-and-flip or rehab project. ” 

Local lenders also know their areas extremely well. When fixing and flipping a single-family home, for example, there may be certain aspects that are more desirable in a particular market, such as a larger kitchen. Local hard money lenders have more insight and experience in knowing what sells in their area and what buyers really want.

National lenders may have a broad overview of an area, but they may never know the important specifics that can help increase your client’s return on investment. Choosing a local hard money lender will ensure a property is transformed into something the local market desires.

Local network

The varied partnerships that local hard money lenders have are another reason to broker deals locally. Local lenders know experienced contractors, inspectors and numerous others contacts for different types of projects.

They have likely worked with these individuals for years and know they will do high-quality work, no matter what the circumstances are. Local hard money lenders will make sure to refer the best professionals, to help commercial rehab or fix-and-flip projects be completed as close to perfect as possible.

Local lenders have access to suppliers that aren’t normally accessible through national lending companies. They also think outside of the box and have numerous contacts for material suppliers that other places simply don’t think of.

It can be hard to know who to trust when it comes to finding a contractor. Local hard money lenders make sure to refer mortgage brokers and their clients to the most trustworthy professionals, because they want every project done the right way.

Personal support

The final — and maybe the most important reason — to choose a local hard money lender is because they may offer valued support that a national lender does not. They want to work with each broker and client personally, to make sure all your wants and needs are fulfilled. Local hard money lenders want to make sure everything runs smoothly throughout the entire loan process, to help their clients avoid any stressful or bad situations.

Local lenders provide access to numerous useful resources and want to make sure their clients are set up to succeed. They offer support in every aspect of a deal and wish to give as much information as possible to all parties involved.

They will sit down with individual clients and answer questions, while giving valuable tips on the best ways to go about completing commercial rehab or fix-and-flip projects. They can tell when a property will make money and when it’s best to walk away.

Local lenders will try to help their clients make the right decisions because they care. A local lender’s individualized support will ensure success while maximizing the return on investment for any fix-and-flip or rehab project.

• • •

The four most important reasons to broker or refer a deal through a local hard money lender are the lender’s speed, extensive knowledge, varied partnerships and valued support. A local lender likely knows the market area well and has the specific know-how to make projects succeed.

Aside from their extensive knowledge and resources, local hard money lenders are going to respond quickly and promptly to any needs and requests. They love the area in which they live and work, and want nothing more than to continue creating an amazing community through perfect property transformations. There are great local lenders out there that commercial mortgage brokers can tap to arrange a hard money loan, so do some research and find the one that fits your clients’ needs. Chances are that their projects will be more profitable, as well as successful, by working with a local hard money lender.


  • Steve Bond

    Steve Bond is president of Trius Lending Partners, which is headquartered in Maryland. Trius is a direct private-money and hard money lender that funds residential investment properties, fix-and-flip and rehab projects, and commercial properties throughout the Mid-Atlantic region. Trius Lending Partners underwrites from a “common-sense” approach and handles every aspect of a loan in-house, typically closing deals within a week. 

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