Breaking Down The Barriers Between Lenders & Borrowers

Why are some private money and hard money lenders finding it more difficult to get their money into the hands of borrowers?

It’s not because good hard money loans and private money isn’t needed. In fact, real estate investors probably require hard money and private money more than ever. So why the disconnect? How can those with cash bridge the gap, and get it to work for great real estate returns?


Spam may be one of the top reasons that private and hard money lenders aren’t seeing the responses they anticipate. There is a ton of spam out there, especially in this particular field. If you want more access to capital, all real estate investors need to do is join a few LinkedIn groups and they’ll be flooded with ads. This noise can make it incredibly difficult for lenders to reach borrowers. Perhaps even more importantly, it is getting harder to stand out from fraudulent companies.


90 percent of the issue might be trust. In fact, virtually every issue we touch on here effectively relates to trust in some way or another. Whether it is questionable materials, preconceived notions, spam, or being burned from other scams, there is a serious lack of trust out there today. Don’t take it personally, but try to consider ways you can improve your level of trust with strangers. Is your presence credible? What comes up when other people Google you?

Terms and Rates

Are your terms and rates really competitive? There will likely always be a borrower willing to pay top end interest rates and points. However, the more competitive lenders are, the more volume they can do. When was the last time you shopped your competitors to check what they are offering? How well do you know your best prospects and their needs? What trade-offs might they be willing to make for different terms? Will less points provide higher rates? Will longer terms gain both? All of these things will impact whether or not a borrower will seek your help.

Ease of Process

How easy is the process of doing business with you? Can prospective borrowers get same day commitments? How fast can they get funded? What upfront fees, if any, are involved? What inspections are needed? What ratio of applications to funded deals can you show off? Can real estate investors apply for a mortgage from you via their mobile phones and tablets?

Lack of Transparency

Don’t expect real estate investors to guess, or take the time to ask. There are so many options out there, and they are in an incredible hurry. More often than not, they’ll be in front of a property or with a deal on their desks, and need to know if they can count on funding before they commit to a contract. Will they find all the answers they need in a hurry? And be confident enough to move ahead? Do you have examples of deals you can provide? Are your parameters clear and easy to interpret?

Getting in Front of the Right Investors

A lot depends on mortgage lenders getting in front of the right investors. It’s obvious that a regular homebuyer with great credit, needing 100% financing, isn’t a good match for most hard money or private lenders. What is important is collecting more targeted leads. So have you taken the time to create an ideal prospect profile? Do you know where they hangout, and the best places and times to connect with them?

Sub-Par Mortgage Lender Websites

As it has become easier and cheaper to design great looking, easy to navigate real estate and mortgage websites, the expectations of consumers have risen. How great are load times, usability, quality, and visibility? Is it time for a redesign, updated content, or better blogs to bring your mortgage site up to par?