Hello all: Good morning on an absolutely beautiful day! I was reading a blog about private money today and wanted to chime in. I have to admit when I used to think about private money, all I saw was how much it cost. True, private money can cost almost twice as much or more than conventional money. At The Legacy Group we charge 12% with 2 points usually. This is actually less than what a lot of other lenders charge (sometimes as much as 15% or higher with several points).
The benefit to private money is you may be able to close a deal quickly. Case in point: One of my co-workers bought a house for $350,000 in a highly sought after neighborhood. The appraisal came in at over $500,000. Our capital arm can get the short term financing and then the buyer can refinance into a lower rate. For either an owner-occupant or a flipper, this is a great deal. Another instance allowed one of our clients to buy a business with the equity he had in his house. The bank he was working with said no and he was in danger of losing the deal. The Legacy Group provided short term money which our client proceeded to refinance into a longer term note.
At The Legacy Group we encourage people to contact us if they have a short term need or sense an opportunity. You can also invest in our company and earn a 12% annualized rate of return. Contact Brent Ely at Brent.Ely@Legacyg.com if you're interested. I hope this clears up any confusion about private money. It can be an alternative solution. Have a great day!
Paul McFadden
I have helped buyers before that were using private money. Each and every time they were ecstatic that they were getting the house.
Paul,
Private mortgage money is often misunderstood. It's expensive, yes, but it can be very useful in certain situations. Just like you mentioned.
Esko: Thanks for your kind words. Have a great day!
Vickie: Thanks for commenting. I know my company is doing fantastic by offering this service. Take care.
Hello Paul, Private Money is what my rehabber clients use to make successful purchases in this market. John
PS - your 2 points sounds very reasonable. If you'll work with my guys here in Vancouver please let me know!
John: Thanks! Yes, we can work with your clients. They or you can contact me. Thanks again!
Hello Paul, I'll forward your information to Perry and I trust he'll call you soon. Thanks! John
Jophn: Thank you! I appreciate this very much. Have a wonderful day!