Soft Money

People have always thought that private funds and hard money were for the person on their last leg or just about to go under.  The lending environment that we have all been thrust into over the last 2-3 years has slammed the conventional bank doors to many if not most small owner and investor.  Once the current administration forced TARP onto the banks they usurped the banks lending power or guidelines and demanded that they only lend money with government underwriting rules.  Thus eliminating the ability for small business and building owners to access their equity and available funds.  The only access for money has fallen onto the private lender and mortgage broker to connect these two.

Private funds are morphing into the primary source of loans for this niche.  The rates and fees are adjusting lower to accommodate this need from strong, equity qualified building owners who are not desperate or on their last leg.  What use to be a common 12% and 10 points for a first trust deed is now more the 9+% and 2-4 points.  Rates not much higher than banks offered 10 years ago.  As our lending situation adjusts to this shorter term lending (2-4years) and lower LTV type of (soft money) will be the norm until a new administration breathes life into our banking world.

I will give you ideas and work with you on what is needed in your personal situation.  Every loan and every building are different and have extenuating circumstances that have to be reviewed and worked out.

Call Patrick Goeglein (310) 293-0736 for Private Funds/ Soft Money.

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