With more of the public turning towards hard money lending in Florida, it’s wise to check with the Better Business Bureau (BBB) before doing business. The BBB keeps track of all sorts of companies, like a roman guard for compliance. Before getting a private money loan always check with the BBB to make sure you’re doing business with an excellent mortgage lender.
If you’re not familiar, hard money is a loan from an individual compared to a bank. People are turning towards hard mortgage lenders because the economy is in ruins and banks are not lending. Higher populated areas like Miami, Dade, and The Palm Beaches are using hard money in larger amounts to keep construction momentum on the rise.
Bank loans are regulated differently then private loans, which is a blessing and a curse. With some private mortgage brokers you can get a loan without a credit or employment check, which is great if you are self employed or have bad credit. On the other hand you must be sure you’re dealing with a reputable broker.
I recently worked with a hard money broker named Franklin Karr and I’ll use this company as an example. When I made the decision to purchase an investment property in Miami, I knew hard money was my only option because I’m self-employed. After viewing Franklin Karr’s website, I went to the BBB and researched the company. I saw that he has the highest rating available (A+), no complaints, and also had a good review. I felt good about a company with such a great rating, so I contacted Frank personally and started working with him.
There is no better way to check your hard money broker’s record then with the Better Business Bureau (BBB). The first step is to open the Better Business Bureau’s national database at http://www.BBB.org/us . On this page, towards the middle, you’ll see an orange button that says “Check out a Business or Charity”. Click this button, type in the name of your mortgage broker’s company and click enter.
Below you’ll see a list appear of possible matches. A new window will open after you click the name of your mortgage company. In the center of the page is a clear letter rating, just like your favorite math teacher would give you. These grades are based on a number of factors, the most important of all is customer satisfaction. To the right of the letter grade is an explanation of the grade and below that more information on the company.
Always keep the BBB in mind before making a decision to work with a hard money lender in South Florida. A good rating equals out to many factors including proper licensing and government compliance. Keep in mind that any business with a bad rating or not listed could possibly cause you problems. Finding a business with an A+ rating, such as Franklin Karr, is a true treat and should be preserved like a golden ring.