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Monday, November 16, 2009

Private Lending Tips

Are you in need of private money or hard money?

I can help!

Before you submit your deal to a Private Lender....!

1. A thorough application is required (What are the funds being used for and the story behind the deal)

2. Explain the issues on the credit bureau (what is the balance really..? Why are you in arrears...?)

3. Get a copy of existing mortgage statements (You ever have the scenario where they say “I think about $120,000” but the real balance is $160,000? “My mortgage is paid up to date” (really it is 2 payments behind) This could kill the deal! Get this information up front)

4. Get a copy of the Property tax statement (this will also disclose any arrears and save you time and energy!)

5. Get an appraisal up front..we all know the value rarely comes in as the client states..they always hope for more (and so do we!) Get the appraiser to do up a broker copy so it is not prepared for any lender!

6. While you are at it you might as well get a copy of the Fire Insurance! It is the last piece of the puzzle!

I know I know this seems like a lot of work upfront...however..there is nothing worse than a deal dying at the lawyers because of property tax arrears, or not enough money to payout a mortgage.

We will still fund a good deal even if there is mortgage arrears or property tax arrears!! We just need to know up front!

If you follow my Quick Tips you should have a quick and easy close because you will have all your figures in line!...and don’t forget to give me a call or email to break down the deal..that always helps too!

905-778-8100 ext 5161