Getting a private mortgage from a borrower perspective.....what's in it for them?

[Carlos Scarpero]

Studying this whole note world and I'm curious....

From a borrower perspective, what advantage do they have going with a private lender vs going through a mortgage company/broker?

Is it more because of a borrower not qualifying traditionally, property not qualifying, or they can get a better deal going private?

I would love some examples if possible.

[Chris Seveney]

Quote from @Carlos Scarpero:

Studying this whole note world and I'm curious....

From a borrower perspective, what advantage do they have going with a private lender vs going through a mortgage company/broker?

Is it more because of a borrower not qualifying traditionally, property not qualifying, or they can get a better deal going private?

I would love some examples if possible.

 As a note investor, we rarely if ever originate loans for owner occupied, we would rather buy on secondary market at a discount. 

The reason being you are correct, many times the borrower is not qualified for the loan, so my response to that is why do I want to give a loan to a borrower who does not have the ability to repay. There are occasions where the borrower does have ability but does not qualify for traditional - but that is rare.

Throw in the fact that I am not a bank so I can create loans out of thin air and only need a 10% reserve as another reason.

I can share good and bad stories - it really goes to underwriting the borrower and the price they pay (paying more) is irrelevant if they cannot make payments