The BIG question…..Who am I working for?

When writing private funds and soft money, I get this question quite often.

Who are you working for?

What they want to know is am I looking out for them, the lender or the borrower.

The answer:  I am looking out for both parties.

I look out for the lender by making sure that the property is worth the amount we think it is and that their position is secured with a strong, safe loan and a great rate.

I work for and take care of the borrower by offering them a loan that conventional banks are unwilling to offer at a reasonable rate.  Lower than “hard” money but more than a conventional bank. There are multiple reasons banks don’t want to lend.

It could be  could be credit issues, income qualification or property type and condition.  All these are situations and conditions we can work around with private funds.

The day of getting 12% on a great first TD and charging 10 points are over when dealing with informed, west side building owners. I know that in the outlying areas like Riverside, San Bernardino, and Bakersfield the hard money lenders are still asking and getting those rates and fees. I have found that I can get better quality borrowers and lower LTV’s by offering lower rates 9%+ and lower points 2+. This is what working for both the Principal and Borrower is all about.

Reasonable rates and reasonable fees on great properties works for all of us.

I am always looking for reasonable principles looking to get a great rate on their money while keeping it safe with low LTV loans. Contact me if your interested in placing your funds.

Leave a Reply

Your email address will not be published. Required fields are marked *

For security, use of Google's reCAPTCHA service is required which is subject to the Google Privacy Policy and Terms of Use.

I agree to these terms.