Private Funding
You find a viable deal. Now to fund... In reference to obtaining private funding from an investor. Private investors want to know the usual: 1. Existing first mortgage. 2. Existing 2nd mortgage. 3. Expenses before construction. 4. Net operating income. 5. Amount needed for construction. ( If any) 6. Amount of money you need from the investor. 7. Your Terms. My question is --Do private investors generally speaking just provide the money for closing costs and other costs related to obtaining permanent and/ or short term financing? (Or both) Do most private lenders only lend if a deal is 50 %? (50 cents on the dollar?) If the project is an ADD VALUE or a VACANT BUILDING that needs work to get up and running again. Do they supply that money as well, (which can be very substantial) or is that money borrowed from a conventional lender as a bridge loan to be paid back after project is finished and permanent financing is put in place? If they only lend for loan acquisition fees /costs what is the usual ROI they ask from you. Do they often want a percentage of the project? Your expertise is greatly appreciated. :-)

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