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How to get a Denver hard Money loan closed
5 tips for borrowers to ensure a smooth closing with a Denver private lender
As seen in the mortgage professional association magazine: by Glen Weinberg coo/partner
Have you ever wondered why some borrowers always get their deals funded? There are a number of borrowers that we have closed a large number of transactions with. I studied what set them apart from others and what enabled them to close more transactions. I developed five key tips for borrowers and brokers to help them close more transactions.
Working with hard money lenders is like the dating game. First impressions count. There are a number of steps borrowers must take in order to make themselves better “partners”
1) Get Organized: Before even picking up the phone, make sure you understand the transaction fully and can explain in simple terms the high level objective of the loan (for example what is the property type, how much does the borrower need, what is the objective of the financing, etc…). Just like in the dating game, this is the first impression. If the lender is turned off by the broker’s lack of knowledge of the deal, the date will end quickly. Professionalism is key in the initial courtship.
2) Know the details inside and out. After the initial discussion, if my interest was piqued in step one, I’ll want more detailed information. Make sure as the broker you are ready to provide this information immediately in a clear format. This demonstrates that you are in control of the transaction and that the borrower is serious. Below are some of the initial items I ask for:
- Address and property description
- Current debt on the property
- Objective of the loan (rate and term, cash out, etc..)
- Current leases on the property
- Other information
- On commercial properties I request: rent rolls, operating statements, environmental reports, etc…
3) Full Disclosure: Lenders hate surprises; be upfront and honest on all aspects of the transaction. Sooner or later the lender will find out whatever is not disclosed. For example is there a tax lien hanging out either on the property or borrower? Is there a tenant dispute? Err on the side of caution and let the lender know of any possible issues. If these items are disclosed many times they can be taken care of prior to or at closing.
4) Do not shop the deal all over: Lenders like nothing more than a broker that sends a deal to various lenders. I get emails all the time where I am copied on an e-mail along with 20 other lenders on a transaction. These e-mails go straight to the trash bin.
5) Execute: Lenders need your help to ensure that transaction closes smoothly, the broker is the interface with the borrower and needs to ensure items are taken care of promptly by the borrower.
See full article as seen in mortgage professional magazine: http://issuu.com/keymedia/docs/mpam7.06/53?e=1100026/6229949
See a picture of Glen Weinberg with his trusty subaru that he uses to inspect Denver hard money transactions and transactions throughout Colorado:
Fairview Commercial Lending has specialized in Colorado Hard Money loans for over 25 years. Denver Hard Money Loans make up most of our activity and include Aurora, Thornton, Northglenn, Evergreen, Cherry Creek, Littleton, Lakewood, Wheatridge, Arvada, Golden, Boulder and other Denver Metro Area communities. Colorado Springs, Fort Collins, Greeley Hard Money Loans are also on the books, providing needed real estate financing to borrowers on both commercial and residential properties. We have the Colorado expertise and creativity in structuring each hard money loan transaction using our own funds We have done loans in Montrose, Grand Junction, Colorado Springs, Fountain, Loveland, Greeley, Brighton, Waldon, Fort Collins, Pueblo, Fountain, Aurora and even Telluride, all Front Range communities (see a list of many of the cities throughout we have funded loans in). Denver Hard Money loans, of course include all the suburbs. As always we lend our own funds and make our own decisions in house. We don’t need appraisals or upfront fees since we are truly a direct lender. Borrowers from Denver and all across Colorado come to Fairview Lending as their Denver Colorado hard money lender.