Conscious Hard Money Lending Vs. Careless Lending

Conscious Lending Vs. Careless Lending 

Written by Joseph Perez


As I write my first blog article I feel the urge to pull references, data-facts, and interesting trivia off the internet.  But instead I have decided to do this “blog post” without a net, and see if perhaps I might hold your attention for a paragraph or two.

When Ester and I started our Hard Money Lending company in 2004, we were naively under the impression that the oceans would part and stars would align; quickly and effortlessly.  Almost ten years later I am happy to report that it didn’t quite work out that way.  And although things didn’t work out in the manner in which I had predicted, I don’t think I could have written a better narrative for our journey.

A word that is used quite loosely and ubiquitously in our industry is “honesty.”  And although it might seem trite and uninteresting to listen to a company tout this word to all ends, I have to say it has served us well in so many interesting ways.  With honesty came excellent mistakes, and with excellent mistakes came meaningful experience.  An excellent mistake in my mind is when the only person taking a hit is me.  “Taking a hit” is a common term I reference for;  loss of money, loss of time, taking ownership of error.

Conscious Hard Money Lending Vs. Careless Lending

The best hard money loan we ever wrote was the one we didn’t write.  This brings me to “conscious hard money lending vs. careless hard money lending.”  Being a father to a 5 and 3 yr old puts a mirror in front of me, and offers an unblinking look at how my decisions impact others.

Every so often I get a call from a potential new client requesting information about our hard money loan products.  And after a few minutes on the phone, I might determine that the potential new client would be an excellent hard money borrower; lots of equity, good income, blemished credit.  However in the course of asking a few more questions, I might also determine that it would serve the client better if they didn’t take the loan.  Best to explore other means necessary to accomplish their goal.  This is where the rubber hits the road for me.  My impulse is to steer a loan in our direction even though it might not be the best solution for the client.  Thankfully, honesty wins over and everyone including myself feels that a new relationship has been cultivated or remained intact.

A hard money loan in my opinion should serve a higher purpose; empower individuals to grow and invest wisely.  Occasionally a hard money loan can be a temporary solution to an extraordinary situation.

I believe that what binds guiding principles and builds excellent experience is “honesty.”  By combining honesty and experience – we are capable of attracting larger and more complex opportunities for Better Loans & Realty.  The future looks promising and I hope that the future encompasses many engaging conversations with you.

Be well, do excellent work, and stay in touch.

Joseph Perez


Better Loans & Realty