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Private Money is less expensive than you think
Have you passed up an investment opportunity because private money was the only financing alternative and you thought it was too expensive?
Have you said that you would never pay the higher cost for private money?
Wise investors look at the big picture when analyzing the feasibility of an investment opportunity and consider private money as one tool in accomplishing their ultimate goal. Private money works best for short term, bridge financing opportunities where value is being created in an asset or where time is of the essence in funding a transaction.
Private money is not the optimal source of financing for most investment situations. However, if private money will allow you to pursue an excellent investment opportunity where otherwise you would not be able to, private money should be considered.
We recently attempted to make a loan to a buyer who was looking at purchasing an office building at an extremely attractive price. The buyer had never used private money and thought it was too expensive and passed on the purchase. The private money was going to be used as a bridge to acquire and stabilize the property which would have created substantial value far in away compensating for the cost of using private money. The buyer got caught analyzing the specific details of the private money loan and not looking at the big picture, thereby walking away from a great investment opportunity.
If you have the chance to acquire or refinance an asset where you can create substantial value, private money is definitely an option. Don't eliminate a great investment or refinance opportunity just because the financing costs may be higher than you are used to paying. Consider you are paying for the prompt individual service you don't receive with conventional financing. Yes, private money is more expensive, but the lost opportunity of not doing the transaction is more costly.
If you are in a position where timing is critical and you need to move fast in order to secure an investment opportunity consider private money as a source of financing. The Loan Company of San Diego is one of the most competitively priced private money lender's in San Diego County and provides extraordinary customer service, so let us see how we can help you accomplish your goal.
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