PRIVATE FUNDS AVAILABLE RIGHT NOW?
EMPHATICALLY, YES!
Several Reasons To Use Private Mortgage Lenders - What is Private
Lending?
Update 2.
Private lending is fundamentally "the
oldest form of mortgage lending". The borrower and lender have what I
would term a direct, personal relationship. It is the lender (or his nominee)
who is the mortgagee and who holds the security.
With financial institutions,
there is no such direct relationship in the sense that the institution makes
loans using funds which have either been pooled for the specific purpose of
making that loan or raised from the capital markets, deposits by investors or
other security instruments for making loans generally. Simply put, in the usual
banking relationship, investor deposit funds with the bank and the borrower
obtains finance from the bank. The investor is paid a conservative rate of
return and has no knowledge of the particular loans that the deposit is
funding.
Little Rock operates in the
private lending market in its simplest form, where one investor provides the
capital for one loan. We collect and present material and information to private
investors in a format where the investor may complete due diligence and make an
informed decision as to whether or not to make a loan.
In the private lending arena, the
investor may consider transactions which do not fit within the guidelines of
current institutional lending, and the pricing of such loans will depend on urgency, nature of the property to be secured,
loan to valuation ratio (which is generally conservative), period for which the
funds are required and the reason for the loan. By it’s nature, private lending
is usually a “bridging” loan alternative.
Transactions funded in the
private market are usually not ones covered by the National Consumer Credit
Code, and in its simplest for, other than with respect to the law in general,
are not regulated by the Australian Securities & Investments Commission nor
the Australian Prudential Regulation Authority.
