Every successful business transaction is built upon communication and a healthy business relationship. There are many ways to build professional relationships, each tailoring to that specific individual.
But today, let’s explore a few tips for building relationships with private money lenders to ensure your next real estate venture is victorious.
Determine Their Wants
It might be easy to contact a lender when only thinking of what you want out of that interaction, but what about the other party? You must approach the conversation ready to listen to what they need in this potential deal.
Their job may be to help you on your project—if they so choose to accept it—but your job is to ensure you’re establishing a compassionate reputation for yourself.
Consider it this way: would you prefer to work with someone who only wanted something from you with nothing to provide in return, or with someone who understands that business is a two-way street?
A healthy business relationship thrives on trust. Show your private lender that you’re trustworthy by providing proper and accurate documentation of your financial history. This will allow them to see your on-time payments, extended relationships, and more to determine how they can assist you.
If you’re working with a private lender for the first time, clear communication is critical. This means letting the lender know what you’re looking for immediately so they can determine if they can help you or suggest someone else.
You must continue communication with your lender even after you’ve received approval. Try sending them photos of construction, regular updates, and more to show them you’re vested in the business relationship. This will also help build trust as they’ll see their loan helping you succeed in the project you agreed to.
There are many hard money lenders in Orange County that can help you in your real estate investments. When looking for a suitable lender, be sure to follow the above tips for building relationships with private money lenders.