Learn how top producing agents use hard money loans for real estate clients to help generate more business and provided a higher level of customer service.
Today we are talking about hard money loans for real estate clients. It’s all about providing options to your clients. We’ve previously covered how implementing a Guaranteed Offer Program can help you attract more listings. Having a list of hard money lenders takes it a step further. The more you can offer as a Realtor, the more referrals you will receive, because being a one-stop shop is just plain good business.
Be a “full service” real estate agent
There is a need, like never before, for a real estate business to be a “full service” operation. If you don’t have hard money financing options readily available, I’m sorry — you’re missing the boat. There are two big reasons to have hard money loan options readily available.
- For your buyers
- For your investors
If you want to know how to get more investors, you need to have financing available for them. They’re not going to easily be able to get their own. If you want investors to want to work with you, have options available.
As a rule of thumb, you need to have at least 5 hard money lenders for your clients and investors. You will be able to use these hard money loans for real estate clients for a number of situations.
Advantages of hard money loans for real estate clients
Get your offer accepted
Cash offers are more attractive in this hot seller’s market. If you are writing offers with traditional financing, you are much less likely to get your offers accepted.
Move more quickly with the purchase and move more slowly with the sale
Forget the hassle of trying to align closing dates and worrying about the home sale falling through or not moving quickly enough. If you have a hard money loans for your real estate clients, you can close quickly on the new home and take your time fixing up and selling the current home.
Your client doesn’t have to search for a hard money lender
Don’t make your client do this! Have options ready and make it easy for them.
Use hard money loans for real estate for yourself, too
We coach all of our clients to invest in real estate. Especially right now — we say, “buy and hold.” Once you develop a good relationship with your hard money lenders, use them for yourself, too. Now is not the time to do a quick flip. It’s a great time to “buy and hold” and watch your equity increase quickly.
Having an all-cash offer will allow you to get your own offers accepted. And, you’ll be giving more business to your hard money lenders, and growing those relationships even more.
Our top performing clients are buying 5-10 rentals a year. Their investments are growing by leaps and bounds. And they are able to secure these properties quickly and easily through hard money loans.
If you run around trying to buy these rentals with traditional financing, you simply won’t have the time. You must become comfortable with using hard money loans for real estate.
This market isn’t going anywhere
Almost every predictor and indicator is pointing to the fact that we are going to see appreciation continue at a crazy high rate for years to come. High buyer demand, low supply … the market is going to be hot and competitive for a long time.
The norm is going to move away from traditional financing. Soon, it will be more commonplace for all buyers agents to provide short term financing options like hard money loans for real estate clients. Everything is easier when you make a cash offer. It’s better for all sides.
“We’ll make your offer a cash offer”
When you are up against 10+ offers, your offer needs to be all cash to be accepted. That’s the bottom line. If you are struggling with getting offers accepted, this could be the key to helping your clients. You must be open to having this conversation with your buyers and explaining the process, and why it is such a solid option.
“We’ll make your offer a cash offer” is the call to action for your clients. You provide the hard money loans for real estate clients, and all they need to do is understand the process.
This is how you can set yourself even further apart from the competition, and truly become a “full service” Realtor.