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: Â 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. Â Lower than “hard” money but more than a conventional bank.Â There are multiple reasons banks don’t want to lend.
It could be Â could be credit issues, income qualification or property type and condition. Â 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.