How to Successfully Close a Hard Money Loan in Today’s Market
The hard money loan market has evolved dramatically over the past decade. While the sector offers more opportunities than ever—thanks to an influx of private lenders and growing demand from real estate investors—it also comes with increased competition and complexity.
So how can you make sure your deal makes it across the finish line? We sat down with Glen Weinberg, Chief Operating Officer of Fairview Commercial Lending, to get his top strategies for successfully closing a hard money loan in 2025.
What Is a Hard Money Loan?
A hard money loan is a short-term, asset-based loan primarily used by real estate investors to finance properties quickly. Unlike conventional loans, which rely heavily on credit history and income documentation, hard money loans are based on the value of the property being used as collateral.
Key Features:
- Fast approval and funding (often in days, not weeks)
- Based on asset value, not borrower credit
- Short-term (typically 6–24 months)
- Higher interest rates than traditional loans
Step 1: Qualify the Deal Quickly
According to Glen Weinberg, one of the most common mistakes originators make is spending too much time on deals that were never fundable in the first place.
Ask yourself:
- Is the property type acceptable to your lender?
- Is the borrower’s exit strategy realistic?
- Are there any red flags with title, liens, or zoning?
“The first step is understanding the lender’s criteria. At Fairview, we’re extremely fast—but only if the deal fits our box. If it doesn’t, move on quickly.” – Glen Weinberg
Step 2: Present a Clean Loan Package
Lenders are more likely to respond quickly if they receive all the necessary documents upfront. A disorganized or incomplete package can delay the process—or even kill the deal.
Essential documents include:
- Executive summary of the deal
- Property photos and address
- Purchase contract (if applicable)
- Renovation budget or use of funds
- Exit strategy
- Borrower background
“We don’t need a 50-page deck, but we do need the basics. Give us what we need to evaluate risk, and we can move fast.” – Glen
Step 3: Communicate Proactively
Speed is everything in hard money lending. Keep all parties informed and be responsive to any document requests. Delays often come from unresponsive borrowers or third parties like appraisers or title companies.
Pro tip: Set expectations early and follow up frequently to ensure your timeline stays intact.
Step 4: Choose the Right Lending Partner
Not all hard money lenders are created equal. Some focus on fix-and-flip loans, others on long-term rentals, and some—like Fairview—offer true private capital with no middlemen.
What to look for in a lending partner:
- Direct lender (no broker chains)
- Transparent terms and fees
- In-house underwriting
- Strong reputation in the market
“Working with a direct lender means faster answers and more control. That’s critical when time kills deals.” – Glen
Step 5: Prepare for Curveballs
Even the cleanest deals can hit snags—unexpected repairs, title issues, or delayed appraisals. The best originators stay flexible and solution-oriented.
Be ready to:
- Negotiate alternative terms
- Pivot to different collateral
- Communicate changes to all stakeholders
“Hard money deals rarely go exactly as planned. But if you stay calm and communicate, you can usually find a path forward.” – Glen
Closing More Hard Money Loans
- Know your lender’s niche. Not all deals fit all lenders.
- Control the process. Lead communication between all parties.
- Be transparent. Disclose risks upfront to avoid surprises later.
- Move fast. In a competitive market, speed can win the deal.
Confidence Closes Deals
In today’s fast-moving real estate landscape, closing a hard money loan successfully takes more than just finding capital. It requires clarity, speed, and strategic thinking.
By qualifying deals upfront, packaging them professionally, and working with an experienced lender like Fairview Commercial Lending, you can dramatically increase your close rate and build a stronger reputation in the industry.
Ready to Close Your Next Deal?
Whether you’re a seasoned originator or just starting in the hard money space, Fairview Commercial Lending offers direct access to private capital and over two decades of lending experience.
Visit www.fairviewlending.com to learn more and get a quote today.
