Hard money is an attractive option to traditional lending, especially for commercial needs. It offers advantages that simply cannot be matched by banks and credit unions. But there is one thing about traditional lending that also holds true in the private arena: working with a local lender can make a significant difference.
The benefits of working with a local lender are pretty easy to see when it comes to hard money. If you are not familiar with hard money lending, it is private lending that is based mainly on the value of whatever collateral the borrower puts up.
Actium Partners is a Utah-based hard money lender operating out of Salt Lake City. They specialize in hard money and bridge loans throughout Salt Lake City and the rest of the state. They explain that there are definite advantages of going with the local lender.
Local Expertise
The majority of hard money borrowers are real estate investors. Since real estate can vary quite a bit from one market to the next, it helps to thoroughly understand the local market you are working in. For an investor, local knowledge is invaluable.
A local hard money lender should know the local market inside and out. A lender’s knowledge and experience go a long way toward a lending package that both lender and borrower can make work. In addition, local expertise can lead to advice that helps prevent a borrower from making a foolish decision.
Finally, local lenders tend to be better at assessing property value and risk, especially in a state as diverse as Utah. Things outside investors don’t know about Utah our old hat to lenders based in the state.
Local Connections
Local lenders also have connections with other local professionals, connections that can speed up the approval and funding processes. For example, a hard money lender will usually want to appraise a property before accepting it as collateral on a loan. Having access to local appraisers could mean getting the job done the same day a loan application is submitted.
Connections with local title companies can also prove fruitful. Establishing solid relationships with such companies gives a local lender the ability to get deals closed more quickly. On the other hand, working with appraisers and title companies from outside the region can complicate matters.
A Local Investment
Yet another reason to approach a local lender for hard money is that lender’s investment in the same community. A local lender wants the community to thrive. The firm has every incentive to ensure that solid deals are made, deals that benefit everyone involved.
Loyalty to the local community helps to inform wise decisions. Assuming those decisions pay off, everybody wins: the lender, the borrower, and the community. There is just no substitute for the community involvement local lenders tend to bring to the table.
Local Lending Not Required
Of course, local lending is not required. Take Actium Partners. While they are based in Salt Lake City and specialize in Utah hard money, they also make loans in Colorado and Idaho. Borrowers in those two states still get access to Actium’s expertise, knowledge, and proven lending model.
In Salt Lake City, Actium makes hard money lending more attractive through local knowledge, local connections, and a commitment to the local community. Anyone looking for hard money or bridge loans in the Salt Lake City area – or throughout Utah as well – would be wise to check out Actium. The benefits of local lending are definitely worth looking into. If I were borrowing, I would hope to keep things local if an possible.
