Avatar's Blog
» Broker or Lender?
Brokers and borrowers alike are always looking for the direct private lender - the source where the checks are written. Almost all the 'lenders' advertising in print and online media today are brokers pretending to be lenders. This unfortunate situation leads to a poor reputation among all hard money lenders and brokers in commercial and residential financing.
Whnd contacting leads located in print or online media in search of direct lenders, it is prudent to ask, "How are you funded?". This simple question will separate much of the chaffe from the wheat. If the party on the other end of the phone stutters or hesitates, you're almost certainly speaking with a broker. Trust me on this.... lenders know where their money comes from; they know how they are funded!
There are only two answer to the question of funding source: investor funded and institutionally funded. And there are advantages to both. Tomorrow, I will cover the differences between the two types of funding for direct private lenders.
