Hard money loans move fast, and brokers who refer them need to stay on top of their game. Unlike traditional mortgages, these loans are short-term, asset-backed, and cater to investors who need quick funding. That means brokers must focus on metrics that measure speed, efficiency, and profitability—not just loan volume.
Tracking the right numbers can mean the difference between closing more deals and losing business to competitors. Here are the top 12 metrics every broker should track when working with hard money lenders.
1. Approval Speed
Time is everything in real estate. Hard money lenders often approve deals within 24 to 48 hours, but not all lenders work at the same pace. Brokers should track:
- Average approval time per lender
- How long it takes to get conditional approvals
- Percentage of deals approved within 48 hours
Why it matters: The faster the approval, the better the broker’s reputation for delivering results quickly.
2. Funding Time
Getting an approval is great, but funding is what actually closes the deal. Brokers should track:
- How many days from approval to funding?
- Which lenders consistently fund within 7 days or less?
- How often delays happen and why?
Why it matters: If funding takes too long, investors may walk away. A broker who can consistently close within a week has a competitive edge.
3. Loan-to-Value (LTV) Ratios
LTV determines how much a lender will finance relative to the property value. Different lenders have different LTV limits. Brokers should track:
- Average LTV offered per lender
- LTV trends for different property types (residential, multifamily, commercial)
- Deals lost due to low LTV approvals
Why it matters: Brokers who know which lenders offer the most aggressive LTVs can better match clients to the right funding sources.
4. Broker Referral Fees
Not all lenders pay brokers the same way. Some offer flat fees, others pay based on loan size, and some allow brokers to charge their own points. Track:
- Referral fee percentage per lender
- Total commissions earned per deal
- Which lenders allow the broker to charge their own points?
Why it matters: A 2% referral fee on a $500K deal is $10,000—knowing which lenders pay best helps brokers maximize their earnings.
5. Zero-Point Loan Options
Some lenders, like Lending Bee, offer zero-point programs that give brokers more flexibility. Brokers should track:
- Which lenders offer zero points?
- Deals closed under a zero-point structure
- How often zero-point options help close deals faster
Why it matters: With zero points, brokers can negotiate their own fees or pass savings to clients to make deals more attractive.
6. Client Retention Rate
A broker’s long-term success depends on repeat business. Hard money investors aren’t one-time clients—they often do multiple deals a year. Brokers should track:
- How many clients return for a second or third deal?
- Which investors do the highest volume of business?
- Which lenders provide the best borrower experience?
Why it matters: Happy clients come back. If a broker has a low retention rate, they may need to improve their lender selection or communication process.
7. Loan Default Rates by Lender
Not all lenders manage risk the same way. Brokers should track:
- Which lenders have the lowest default rates?
- Which lenders are most flexible with extensions?
- What percentage of loans default before maturity?
Why it matters: A high default rate can mean tougher underwriting and stricter terms, making it harder to get deals approved.
8. Loan Denial Reasons
Tracking why deals get denied helps brokers adjust their client vetting process. Common denial reasons include:
- Low property value or bad appraisal
- Borrower’s exit strategy is weak
- Property condition doesn’t meet lender guidelines
Why it matters: Knowing why deals get denied helps brokers set client expectations and improve approval odds.
9. Average Loan Size
Hard money deals range from $100K to $10M or more. Brokers should track:
- The average loan size per lender
- Which lenders specialize in small or large deals?
- Which deal sizes bring the highest referral fees?
Why it matters: If a broker’s average deal size is low, they may need to target bigger investors or higher-value properties.
10. Fix-and-Flip vs. Buy-and-Hold Clients
Different investors have different needs. Brokers should track:
- What percentage of deals go to fix-and-flip investors?
- How many investors seek long-term rental financing?
- Which lenders specialize in each strategy?
Why it matters: If a broker focuses too much on one type of investor, they could be missing opportunities to serve a wider client base.
11. Number of Repeat Lender Partnerships
Not all lenders are reliable. Brokers should track:
- Which lenders approve and fund the most deals?
- Which lenders have the most competitive terms?
- Which lenders offer the best broker support?
Why it matters: Strong lender relationships lead to faster approvals, better terms, and smoother transactions.
12. Marketing Conversion Rates
Tracking how clients find a broker is key to growing a referral business. Brokers should track:
- Where leads come from (social media, networking, email marketing)?
- Which marketing efforts bring in the most deals?
- How many leads convert into funded deals?
Why it matters: A broker who knows which marketing channels work best can focus on what actually brings in business.
Why These Metrics Matter for Brokers
Brokers who track these 12 key metrics will have a clearer picture of their business performance. They’ll be able to:
✅ Close deals faster by working with the right lenders
✅ Make more money by choosing lenders with better referral fees
✅ Improve client relationships by avoiding lenders with high denial rates
✅ Stay competitive by marketing where it actually counts
Lending Bee: Helping Brokers Close More Deals
Lending Bee provides brokers with:
- Fast approvals & funding (3–7 days)
- Zero-point loan options for more flexibility
- Competitive referral fees
- Reliable lender partnerships
Brokers who track the right performance metrics will win more deals and build stronger investor relationships. Want to work with a lender that helps you scale your business? Contact Lending Bee today.