Shaking hands

So many hard money lenders put their hard-earned money into risky real estate businesses. They usually do not need to look at your credit score - all they need is a down payment or your equity in an investment. For this reason, you need to be a trustworthy borrower.

If you want to remain in good books with hard money lenders, it is important to build and maintain trust. Observe the following things so you can reduce the perceived risk amount with your appointed hard money lenders.

Be committed to your promises

The first thing you need to observe when dealing with any lender is trustworthiness. In the lending industry, no commitments are too small or too large to keep. These range from showing up at your meetings promptly to repaying loan installments as agreed.

Do you answer phone calls from your lenders promptly? Something as trivial as failing to reply to emails could cause a dent to the trustworthiness in the eyes of current and potential lenders. No matter how busy you are, ensure that you do not cause breach of communication.

In addition to being committed to your lender, extend the same commitment to everyone around you. Note that lenders usually research your character from individuals and organizations that you deal with. Being good to everyone in your circles will make them put in a good word for you.

Keep documents of your good deeds

Instead of paying empty lip service, it makes more sense to keep documents that show your trustworthiness. Construct a Banker’s Book and maintain all your loan payment documents. You never know when you will need to ask for more loans with your current or different hard money lenders.

Examples of documents that you can keep are payment receipts, credit score reports and bank statements among others. Keep documents showing how you used your past loans, how your real estate business brought returns and how you repaid previous lenders. While at it, keep a list of references who can vouch for you.

Explain your numbers in clear language

You will need to meet your lenders once in a while. During these conferences, lenders will ask how your investment is doing. Be prepared to answer tough questions on investment, tax and insurance among other complex matters. Be prepared with hard yet easy to understand numbers.

How have you arrived at the numbers in your presentation? Lenders want to see workings and real appraisals on how you will make enough money to support your business and repay all loans. A thorough understanding of your numbers increases your confidence.

Listen attentively to your lender

Just like in all aspects of life, communication in the lending industry is two-way. In addition to presenting your ideas, numbers and projections, listen to the needs of your lenders. Think of them as investors who want the best out of the partnership.

Anyone putting their money in investment wants to know the risks, opportunities and threats involved in the business. Listening to them will help you prepare an efficient SWOT (strengths, weaknesses, opportunities and threats) analysis.


Avoid the temptation to sugar-coat your presentations to current and potential lenders. Remember that their experience places them in a position of knowing if you are presenting realities or half-truths. If you need to find a hard money lender that is a perfect match for your investment needs, you can quickly do so on our site by answering a few quick questions.

  We Make Hard Money Easy and free to find