More than ever there are abundant expansion opportunities for hard money lenders outside New York City and the Boroughs. Due to the significantly decreased demand, the shutdown of the NYC economy, severe legislative restrictions on property owners and general mass exodus out of the City, real estate investors are targeting locations all over the country as an alternative. Here are a few general pieces of advice for hard money lenders looking to expand their business operations outside of New York City.
Educate your team on desirable locations and trends in investment and development outside the NYC area. Initially concentrate on a single location and seek to tailor your lending services to accommodate the local lending needs in that given area. Research the general competition and availability of private money in those areas and target those areas with fewer hard money players. The tri-state area is extremely competitive with an abundance of lenders, this is not the case in many areas throughout the country. Utilize your established network to gain contacts in the targeted areas.
In addition, pivot your business approach and develop direct contacts with local brokers, investors, attorneys and real estate professionals through LinkedIn. Through these communications you will quickly learn the lending demand in these markets. Bringing knowledge plus established speed and efficiency to markets not accustomed such could be eye opening and create immediate opportunities.
If you are looking to expand your lending business into new areas, reach out to Andelsman Law today. We specialize in helping lenders grow their businesses nationwide utilizing our expansive nationwide network of real estate professionals, investors, lenders and capital providers.