Choose a private-money broker by evaluating relevant deal experience, clear written costs, realistic execution and how your information is handled. Ask who will fund the loan and what remains subject to review. A persuasive conversation is not enough; the proposed financing needs to fit the property, your available cash and the exit plan.
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What Should I Ask Before Sharing a Full File?
Describe the project without sending sensitive documents immediately. Ask whether the broker handles that property type, state, loan purpose and approximate transaction size. Explain any timing or credit constraints so you can assess likely fit before preparing a large submission.
Verify the firm’s identity and contact information independently. Ask about applicable licensing or registration for the transaction and check relevant public records where appropriate. Requirements vary by state and activity; a website badge or a generic national claim is not a substitute for verification.
How Can I Compare Brokers Fairly?
Request a written explanation of broker compensation, lender charges, estimated third-party costs and any application or deposit terms. Clarify when money is due and whether any charge is refundable. Ask which proposal terms are indicative and which have been reviewed by the intended lender.
Compare communication as well as pricing: who owns your file, how outstanding items are tracked, and when you should expect the next update. Ask for relevant experience or references without expecting another borrower’s private financial records.
What Warning Signs Deserve More Questions?
Be cautious about guaranteed approval before meaningful review, pressure to wire money without clear written terms, or a loan estimate that ignores obvious project costs. Independently verify payment instructions through a trusted channel before wiring funds.
Understand where your application will be submitted and how sensitive documents should be delivered. Do not email passwords or banking login credentials. Choose a partner who can explain both the opportunity and unresolved conditions plainly, including what happens if the first funding option does not work.
Educational information, not a loan offer. Availability and terms depend on the program, property or business, and borrower qualifications. Legal and tax questions should be reviewed with your advisers.