As a Utah firm specializing in hard money and bridge loans, we believe it is important for investors to find one or two lenders they can work with regularly. Developing a strong relationship with a lender puts an investor in an equally strong position whenever a new deal is being pursued. The big question is how to choose the best lender.

There is no such thing as a perfect lender. As private lenders, we do everything we can at Actium to make sure our clients are taken care of. The best advice we can offer is that you diligently research lenders you think you might be interested in. When all your research is done, ask lenders the following three questions:

1. Are you local to Utah?

The hard-money industry stretches across the United States. There are private lenders offering hard money and bridge loans for all sorts of real estate projects in every state. For our money, going local is important. If you are looking to invest in Utah property, choose a hard money lender with offices in Utah.

Actium Lending is based in Salt Lake City. We are intimately familiar with this particular market because we live and work here. We are also familiar with the rest of the Beehive State. How does this help you?

For starters, a lender’s local knowledge could make an appraisal unnecessary. Not needing an appraisal would mean faster approval and funding. In addition, knowledge of the local market gives a lender a better understanding of different property types, their values, and how to best structure loans to meet individual investor needs.

2. What is your typical closing timeframe?

Next, be sure to ask lenders about their typical closing timeframes. Actium Lending can approve and close in under a week on most projects. However, we can move much more quickly if necessary. For example, we have been known to close in as little as one business day.

We have helped clients in the past, clients whose banks backed out of funding a day before closing. One particular case involved a client who called us on a Friday. He was scheduled to close on Monday. We were able to approve that afternoon and get the paperwork completed before the end of the day. Paperwork and funding were forwarded to the title agency on Monday morning, and closing proceeded as planned.

As a real estate investor, you know how critical it is to get deals done quickly. Therefore, a lender’s closing timeframe is important to you. Do not work with a lender who takes longer than you can afford to wait.

3. What are your average interest rates and fees?

Interest rates change regularly. However, it is okay to ask lenders what their average rate has been over the last year or so. Also ask about their fees as a percentage of the total loan amount. Then balance rates and fees with all the other advantages and disadvantages you have learned through your research.

Rates and fees are probably not going to be the sole factor in determining a preferred lender. But they are still part of the equation. After all, why pay more than you need to for a hard money or bridge loan?

Hard money and bridge loans are what we do here at Actium Lending. We proudly serve clients in Salt Lake City and throughout the entire state. If you are planning to invest here, let us help you with competitive private loans designed to help you achieve your financial goals.