When it comes to financing a rental property, there are many loan programs available including government sponsored and private label loans. While both Visio Lending and hard money loans fall under the private sector, there are some key differences between Visio Lending and hard money lenders. Simply put, Visio’s focus is providing long-term financing to enable landlords to grow their rental portfolios. On the other hand, hard money lenders typically fund construction projects, such as short-term flips, rehabs, or new construction. Here is a closer look at some of the additional key contrasts between Visio Lending and hard money lenders:
Appraisals: Visio Lending requires a 3rd party appraisal, and not all hard money lenders do. Some use a Broker Price Opinion (BPO) or other methods to determine lending value
Property Condition: Visio Lending requires properties to be in C4 condition or greater, meaning we only fund rent-ready properties with no deferred maintenance. While hard money lenders finance construction and rehab projects, so they do not require move in ready property condition.
Due to the differences in financing and focus, Visio Lending is not in any direct competition with hard money lenders. In fact, Visio Lending and hard money lenders often work together and complement each other. Many of Visio Lending's customers invest in both fix and flip and long-term rentals. Our borrowers often will use our financing to pull cash-out of an existing rental property and pay back their hard money loans in full.
Not only do our borrowers use financing to pay back hard money loans in full, but hard money lenders also will participate in our Partner Programs. Many hard money lenders actually broker rental loans to us through our top-rated Broker Program. Hard money lenders love our Broker Program because they can earn up to 3 pts per closed loan, and Visio always pays the first point. Plus, hard money lenders already have relationships with rental investors. So finding them is easy, and helping them with their rental loans is an easy way to offer an additional service to their existing clientele. As an alternative to our Broker Program, some hard money lenders will participate in our Referral Program. They key difference is that through the Referral Program, we do all the work to get your referrals through the pipeline, whereas in Broker Program, Brokers are responsible for key paperwork and client communication. Both programs are fantastic ways for hard money lenders to generate additional income, further service their clients, and of course get their hard money loans paid back in full.