Harpreet’s perspective
Real questions. Real properties. Real numbers.
Private financing can be expensive. Rates can be higher, and there may be lender fees, legal expenses, appraisal costs, and other borrowing costs. So why would anybody use it?
Because sometimes the cheapest financing is not the financing that solves the problem.
When Speed or Flexibility Matters
A deal may be closing quickly, traditional financing may have fallen apart, a property may need major renovation, or income and credit may not currently fit conventional requirements. Depending on the property, equity, lender, and transaction, private financing can sometimes provide flexibility that traditional financing cannot.
In appropriate situations, a private mortgage may potentially close in as little as twenty-four hours, although that is never something I guarantee. Give me the actual deadline. If I think we can move that quickly, I will push. If we cannot, I will tell you.
Show Me the Exit
Before getting into private financing, I want to understand how we are getting out: selling, renovating and refinancing, improving credit, establishing income, waiting for another property to close, or moving into alternative or traditional financing.
Private money should ideally be a bridge, not somewhere you accidentally live for five years. Fast money without an exit strategy can become very expensive slow money.