Private vs. Hard Money

[Dionne Ladson]

Is private lending more cost effective and flexible than hard money lenders?   

[Jay Hinrichs]

Quote from @Chris Seveney:

Quote from @Dionne Ladson:

Is private lending more cost effective and flexible than hard money lenders?   

 Technically yes. It really depends on how you define them. If you are referring to hard money lenders as the larger companies like Kiavi and Toorak then yes private lenders are more flexible, but they may or may not be more cost effective.

For example we do some private lending and we are absolutely more flexible than some of the HML's but we are not more cost effective, we are more expensive. Why, because we are more flexible.

Nice way to couch it Chris.. Example I did a deal this week came to me one week ago and we closed today.. No appraisals ( I do my own valuations) I ordered title through my title company got title commitment in 48 hours.. The borrowers BK Lawyer helped with the UCC 1 we needed on the cross  collateral and my Title company did the mortgage and I wrote the note.  Closed and funded today.  this loan bailed this person out of a huge BK that if the trustee did not get the money today he was going to get stuck with 3 million dollar judgement.. For this service were we saved his financial butt I charged 3X of what he would have paid with Kiavi or Lima one etc.. but those guys cant move like we move.. so it all worked out And thats pretty much the niche i have carved out.. Its hair on fire usually every deal .. and normally what happens is folks start with those that advertise the cheapest they take way too long ask for way to much stuff then about a week before they lose the deal they call me needing my specialized services.