Expand Your Brokerage with a Broker-Friendly Hard Money Lender

In this fast-paced real estate market of today, brokers who rely only on traditional financing are leaving behind a booming niche: hard money lending. While conventional banks restrict credit more and more and close timelines drag out to 30–45 days, smart brokers are turning to hard money lenders to assist their investor customers—fix-and-flip operators, developers, and rental portfolio builders—to make fast moves on deals.

With the private lending market expected to hit $2 trillion in assets this year, up from $1.75 trillion in 2024, demand for quick, nimble financing solutions has never been higher. And this boom offers brokers a golden opportunity to access an expanding market segment that demands speed, flexibility, and personalized service.

Collaborating with a broker-friendly hard money lender not only provides your customers with more choices but it can also open up new streams of revenue, add depth to your value proposition, and make you the standout in an overcrowded market.

In this guide, we’ll cover:

1. What hard money lending is—and why it’s on the rise
2. May 2025 market snapshot: volumes, rates, and deal sizes
3. The benefits of working with hard money lenders for brokers
4. How brokers can use hard money loans to win and retain clients
5. Building a hard money partnership with RCN Capital
6. Five strategies to boost hard money originations

1. What Is Hard Money Lending?

Hard money loans are asset-based financings collateralized largely by real estate, as opposed to credit score or W-2 income of the borrower. They usually have:

• Short terms (6–36 months)
• Interest-only payments
• Flexible underwriting based on collateral value and exit strategy
• Fast closings (7–14 days)

For investors requiring speed and certainty—whether to "flip" a property, finance bridge financing, or cover ground-up development—hard money may be the determining factor in winning the deal or losing it.

2. Market Snapshot: Bridge Loan Volume & Rates

According to recent industry data:

• Volume of bridge loans increased 25% from January 2023 to January 2024, highlighting increasing investor demand for short-term capital.
• The average national interest rate for bridge loans remained around 11%, between 10.97% and 11.48%, throughout 2024.
• Average loan sizes increased from $407,800 in early 2023 to $462,700 at year-end.
• California, Florida, and Texas are still the volume leaders among the states, with Los Angeles, Cook County, and San Diego leading at the county level.

These statistics show that hard money lending is not a niche industry—it's a necessary tool for much of today's real estate investor.

3. Benefits of Working with Hard Money Lenders for Brokers

3.1 Speed Wins Deals

When several offers swamp a listing, a 10-day close trumps a 45-day bank approval hands down. Providing hard money loans for real estate investors, you assist clients in locking up acquisitions before other buyers can complete underwriting.

3.2 Flexible Structures

Hard money lenders underwrite based on loan-to-value (LTV) and after-repair value (ARV), not individual debt-to-income ratios. Your clients have access to:

• Bridge loans for quick acquisitions
• Fix-and-flip financing covering purchase + rehab
• New construction loans with interest-only draws

3.3 Enhanced Commissions

Most hard money loans compensate brokers in points, yield spread premiums, or flat referral fees—usually 15–25 basis points over traditional loans. With higher transaction sizes and repeat business from investors, your revenues can be dramatically increased.

3.4 Market Differentiation

By establishing yourself as a hard money lender for brokers, you become the investor's first choice for alternative financing. This expertise gives you a competitive advantage over other brokers who deal in only bank products.

3.5 Stronger Client Relationships

Assisting customers through creative structures builds trust. Customers who view you as having "made it happen" are more likely to come back—and bring investor friends with them.

4. How Brokers Can Use Hard Money Loans

• Qualify More Clients
  • Work with self-employed professionals, foreign investors, and borrowers with complex credit profiles.
• Close the Loop on Fix-and-Flips
  • Bundle purchase and renovation funding, and help clients exit either by sale or refinance.
• Bridge to Permanent Financing
  • Offer bridge loans that fill timing gaps until long-term mortgages are ready.
• Leverage Cash-Flow Deals
  • Use DSCR-style hard money products for rental portfolio expansions.
• Upsell Value-Add Services
  • Offer white-label marketing materials and electronic dashboards (through RCN's BLN Software) to simplify customer communications and repeat business.

5. Building a Hard Money Partnership with RCN Capital

Broker Referral Program Highlights

• Dedicated Lending Team: RCN’s specialists manage applications, clear underwriting conditions, and coordinate closings—so you can focus on client relationships.
• Competitive Compensation: Flexible structures let you earn on points, fees, and yield spreads. All fees are transparent on the commitment letter and HUD statement.
• Fast Pre-Approvals: 24-hour decisions on complete applications keep deals moving at investor speed.
• Broker Protection: RCN never courts your clients directly; your role stays front and center.

Broker Resources to Fuel Growth

• White-Label Marketing Materials: Fully customizable flyers, email templates, and social posts under your brand.
• Amplify Training Platform: Free, self-guided courses on hard money lending, deal structuring, and RCN’s programs.
• Loan Management Software (BLN): Cloud-based portal for submitting docs, tracking status, and ordering valuations—all with your branding.

Steps to Get Started

1. Submit the Broker Registration Application
2. Schedule your onboarding call
3. Complete BLN Software training
4. Sign your contract agreement

6. Five Strategies to Boost Hard Money Originations

Borrowing from industry best practices and competitor insights, here are five tactics to maximize your hard money referrals:

• Cultivate Lender Relationships
  • Regularly touch base with your RCN Capital team. Attend joint webinars and local investor meetups to stay top of mind.
• Showcase Your Expertise
  • Publish blog posts or send newsletters that explain hard money vs. traditional financing, bridge loan benefits, and fix-and-flip case studies.
• Offer Creative Structures
  • Propose interest-only loans, or equity participation deals for unique client scenarios.
• Deliver White-Glove Service
  • Keep clients updated at every step—use BLN Software’s real-time dashboard to reduce uncertainty and build confidence.
• Leverage Technology
  • Automate lead follow-up with a CRM integration. Employ RCN's electronic term sheets to create immediate quotes over the phone or on property tours.

The hard money market isn’t a sideline—it’s a core growth engine for modern brokerages. By partnering with a broker-friendly hard money lender like RCN Capital, you’ll close deals four times faster than banks, offer flexible, creative financing solutions, and unlock higher commissions.

RCN Capital

The best way to save on a real estate investment is to obtain financing from a lender that can provide you with the best leverages and rates. RCN Capital lends to real estate professionals, commercial contractors, developers & small business owners across the nation. We provide short-term fix & flip financing, long-term rental financing, and new construction financing for real estate professionals. If you are looking to offer hard money financing to your clients, RCN Capital has competitive loan options and an award-winning broker referral program available to partners.