When it comes to searching for a hard money loan, you have two options: 1) you could go with a national lender with headquarters located in various areas across the nation, or 2) you could opt for a local lender based in your area. Do you know which option you would best benefit from? We can help you decide.
When dealing with a local lender, there are several benefits you’ll receive that are not possible with a national lender. From faster closings to connecting you with local companies/vendors, working with a locally-based lender can benefit your project in multiple ways. Read on to learn more.
Easier Communication and Coordination
Working with a local lender makes it much easier to communicate. If you have a question, or want to get some advice from your loan officer, you don’t have to wind your way through a maze of 1-800 numbers and touch-tone menus just to talk to a person. When you choose us as your private lender, you will receive our personal office numbers that we answer at all times. Our office is centrally located in the Washington DC Metro area so we are only a short drive away from your property. We can visit your properties on the same day any issues arise or you need to close quickly. As opposed to national lenders that would have to make arrangements days in advance due to being out of state.
Knowledge of Local Market
At Washington Capital Partners, we have extensive industry experience and we have completed renovations of our own. As expert hard money lenders in the D.C. metro area, we have seen a multitude of deals across the area. We close several deals per day in D.C., Maryland and Virginia, so we know the market inside and out. We live and breathe our market every day, and we have the ability to tell you exactly what will sell here because we fully understand your reality in the current market. On the other hand, national lenders may just put money into the property without providing any insight or value to your project. So you may be wondering, why does it matter if my lender knows anything about the local market? If they agree to lend the money I need, why does local knowledge matter? If your lender is not familiar with the market you are building in, you could be wading into dangerous waters because they may provide you with more or less funds than you need for the project. If your lender gives you more money than your project requires, you will have higher financing costs. But if they don’t provide you with enough funds, you will not be able to complete your deal. Do not underestimate the value of having a lender who completes similar deals to yours in the same area multiple times per week.
Extensive Local Contacts
We have been in business in the D.C. metro area for more than 3 years. In that time, we have developed relationships with several different contractors, inspectors and maintenance companies in D.C., Maryland, and Virginia. If you need recommendations for any part of your deal, we will be able to put you in contact with local, top-rated companies that can assist you. We can also help connect you to the right buyer, if needed. If you work with a national lender, they will most likely leave it up to you to find your own contractors, which can lead to extra stress and take up some of your valuable time.
Faster Turnaround
By dealing with a local lender, it is easier for you to get a faster turnaround on approval, inspections, construction draws and closings. Because we are local, we can get an inspector out to your property immediately, whereas someone who is based out of state will need to make arrangements in advance for these services. Most lenders outsource to appraisal companies that could take weeks to schedule, review and produce an appraisal report. If you have a deal that needs to close fast, forget about using those other guys.
Face-to-Face Meetings
When we accept a deal, we are signing on to be your support system through the entire rehab of the property. Over the years, we have found that many people underestimate having a human connection with their lender. With face-to-face meetings, we are not only building trust, we take the time to listen to all of your ideas and provide educated, valuable feedback based on our own experiences in today’s market. By working with us, you get the added benefit of learning from mistakes that others have made, and we can help you make sure you avoid certain situations that have not worked out in the past.
As always, feel free to reach out to us with any questions or comments you may have. We value your feedback!