In the fast-moving world of private lending, brokers play a crucial role. You’re not just connecting borrowers with capital—you’re helping real estate investors move fast, stay compliant, and win deals in a competitive market.
At Lending Bee, we work with brokers across California every day. We’ve seen what makes these partnerships work—and what causes deals to fall apart. Whether you’re brand new to hard money or a seasoned broker looking to fine-tune your approach, this guide will help you close more confidently and sustainably.
Let’s walk through what matters most when you’re working with real estate investors as a broker—and share key hard money compliance tips to keep your deals (and your license) safe.
1. Understand Your Client’s Real Goals (Not Just the Loan Amount)
Great brokers go beyond the numbers. Before you submit a deal, ask:
- What’s their strategy—flip, BRRRR, buy-and-hold, wholesale?
- Do they have a clear exit plan?
- Is this a first-time investor or someone doing 10+ deals a year?
Understanding your client’s full picture helps you present a stronger package—and sets realistic expectations around loan structure, timelines, and approvals.
Bonus tip: Repeat investors will expect speed and low friction. Newer investors may need education and guidance. Know who you’re talking to.
2. Set Clear Communication Expectations From Day One
Time kills deals. And miscommunication kills them faster.
When working with real estate investors as a broker, your job is part translator, part project manager. At Lending Bee, we’ve seen smooth deals where:
- Brokers gather all docs upfront—purchase contract, rehab scope, LLC info
- Timelines are communicated clearly to the borrower
- Brokers respond fast to lender follow-up questions
Avoid:
- “Let me check” loops that drag on for days
- Sending incomplete files
- Overpromising loan terms without lender confirmation
We’re happy to move fast—but only when the full file is ready.
3. Know the Lender’s Guidelines Before Submitting
Different lenders have different appetites. Submitting an industrial property to a lender who only does residential? That’s a waste of everyone’s time.
Lending Bee lends on:
- Residential (SFR and 2–4 unit)
- Light commercial and mixed-use
- Properties throughout California
We pass on land, heavy industrial, and out-of-state deals, but can offer Zero points programs for some projects. Knowing our loan criteria helps you pre-qualify your borrowers and protect your credibility.
Need a checklist? Ask us—we’ll send you one.
4. Follow Basic Hard Money Compliance Tips
Staying compliant doesn’t have to be complicated. But skipping these basics can lead to real legal exposure.
✅ Disclose All Broker Fees
You must disclose your fee to both borrower and lender. This protects you and keeps everyone aligned.
✅ Get Written Authorization to Share Info
Even in private lending, always get written permission before sharing borrower documents with third parties.
✅ Don’t Promise Loan Terms You Can’t Guarantee
Only the lender can lock terms. It’s fine to give a general range, but always qualify with “subject to final approval.”
✅ Avoid Conflicts of Interest
If you’re brokering a deal on a property you own or control, disclose that clearly. Transparency builds trust—and avoids legal issues.
If you’re unsure about anything related to hard money compliance tips, reach out to our team. We’ll help you navigate it safely.
5. Be the Bridge, Not the Bottleneck
The best brokers we work with are deal enablers. They don’t try to control every step—they facilitate, communicate, and keep the ball rolling. Here’s how:
- Answer questions before we ask them
- Prep your borrower to move quickly
- Confirm title, insurance, and escrow contacts early
We’ll handle the underwriting and funding—you handle the relationship. When we work as a team, everyone wins.
6. Choose Lenders Who Value Broker Relationships
Not all lenders play fair with brokers. At Lending Bee, we:
- Always protect your commission
- Offer fast turnarounds (most deals close in 5–7 days)
- Provide clear term sheets and same-day deal feedback
- Never market directly to your clients without your consent
We see brokers as long-term partners—not middlemen. Our best broker relationships have lasted years and closed dozens of deals.
Final Thoughts: Brokers Make the Market Work
If you’re a broker navigating California’s investor space, you’re more than just a connector. You’re a key player in helping entrepreneurs grow portfolios, build communities, and create wealth through real estate.
By mastering clear communication, understanding your borrower’s big picture, and following smart compliance practices, you’ll become an invaluable resource to both clients and lenders.
At Lending Bee, we’re ready when you are.