You have a hot real estate deal cooking and you know that you’ll need to take advantage of hard money lending in order to secure the deal. But what type of lending should you attempt to get? Do you get a loan from a local lender or do you deal with a lender operating across the nation?

Only you can truly decide which option is best for you. But we’ll tell you about both options so you can determine which one seems best to meet your needs.

The Benefits of Doing Business with a Local Hard Money Lender

As you can imagine, there are going to be certain advantages to using a local hard money lender as opposed to one operating on a national scale. Those benefits could mean the difference between getting a deal done and missing your once-in-a-lifetime opportunity. So it’s important to consider choosing a local lender as opposed to one working nationally.

Some reasons to consider local hard money lenders include:

  • Personalized attention – when dealing with a local lender, you’ll have an opportunity to get personal attention by working with this person face-to-face. In fact, more than likely they are a small business owner in your community. They will get to know you, know about you, and better understand the reason why you are requesting a loan. This makes it much easier to present your case personally and convince the lender that you are an excellent fit.
  • Processing times are faster – when dealing with local lenders, you are typically going to end up dealing with the decision-maker. By having access to the person in control of the funds, they will have no need for a third party or middleman. They will be able to determine if you qualify for the loan or not and this will save time and money and expedite the approval process. In fact, your deal can be done in as little as 1 to 2 weeks which is absolutely excellent.
  • Loan approval likelihood increases at the local level – more than likely, a local lender will feel compelled to do business with you because they will know whether or not you are presenting them a good deal. They can physically go and view the property to determine if it’s a good choice for their loan. Plus, local businessmen and women like to deal with other locals to help improve their community.

The Benefits of Doing Business with a National Hard Money Lender

On the flipside, choosing a national hard money lender is also a good idea in some situations. You should go national in the following situations:

  • Local lenders are scarce – if you live in a very rural neighborhood or area, you may have a difficult time finding local hard money lenders. In this case, a national lender definitely makes a great deal of sense.
  • National lenders mean competitive interest rates – by sticking only to your local community, you are stuck with whatever interest rate comes your way. By going national, you expand your options and can potentially secure a much better interest rate in the process.

In conclusion, there are benefits to working with local hard money lenders and national hard money lenders. In truth, you shouldn’t cut yourself off of either of these options. Choose the best lender to meet your needs and go from there.