Finance is Not Just About Face Value Numbers - It is
also about comparative advantage, timing and opportunity cost.
PRIVATE FIRST (AND BLENDED) MORTGAGE FINANCE
Sometimes, it is necessary to take advantage of a
situation that you didn’t know about yesterday, and which may not be there
tomorrow!
Sometimes, it is necessary to consolidate right now to
MAXIMISE benefit (or occasionally even MINIMISE loss) to fight on another less
stressful day. We take all of this into account.
It is the totality of all considerations that should
determine whether or not to proceed down THE PRIVATE FINANCE path. Of course
cost is a consideration, but only in context of benefit. Little Rock is an
expert in providing some of the tools to assist you with your funding analysis.
Why don’t you call us to find out?
Those of you who know us are aware that we take a no
frills approach (including with this bulletin).
There are no bells and whistles – just results.
Even our marketing contact is kept to a minimum, with
word of mouth being our greatest ally. We haven’t spent a fortune on a fancy
web site. It is not possible to provide a cost matrix – every deal is
different, just as every lender has transaction preference. We are not a one
shop stop and are specialists in our field.
We’d rather talk to you directly.
AND WE WELCOME REFERRALS FROM OTHER LENDERS
WHO MAY NOT PRESENTLY HAVE THE RESOURCES OR PRODUCT COVERAGE TO COMPLETE A
PARTICULAR TRANSACTION & WILL INCLUDE AN ALLOWANCE FOR THIS IN OUR STANDARD
PRICING
Happy New Year to you all!
We sincerely trust that 2014 will be prosperous for you, and
hopefully that prosperity may, at least in part, come from transactions that we
have completed together.
Are the banks progressively being more aggressive in their
approach to funding? Anecdotally, we are of the view that “yes” is the answer.
Does that mean there is no place for private transition funding? Absolutely not
– we all know that what the bank giveth, the banks also taketh away. There has
always been, and always will be, a requirement for commercially reasonable
private mortgage finance.
As has most certainly been the case for a while now, we have
considerable private first mortgage funds available to the usual 65-70% LVR
levels. I am also presently able to consider “blending” up to 80% (in the case
of residential non-code properties). It all depends on the nature of the
security. No valuations are required. If you give us one, then so much the
better, but we will base our decisions on our own research into the current
market. Having established that we are interested in the security and at a
level that works for all parties, quantum and urgency are the next most
important factors.
The Little Rock profile rarely changes, though we may
occasionally have “one-off” packages presented for our use. Our preference is
for non-code residential transactions in the $300,000 to $1,000,000 range,
though smaller deals will be considered, and we have the capacity to complete
larger ones as well (preferably where there are a number of independent securities,
though with the maximum for a single property being about $5,000,000 at the
moment – this of course varies according to availability of funds). We thrive
on uncomplicated, private transition finance, but will consider something a
little more complex if it makes commercial sense. Generally, we are
priced at the lower end of the private market, but this will clearly depend on
the volume (clearly there are fewer private lenders with extremely deep
pockets, and competition for funding in that rarified atmosphere can be
significant). For pricing purposes, the nature of a proposal in its totality
must be taken into account (including its urgency)
Though it is not our preferred path, we have limited funding
available for construction funding. Again, pricing can only be established once
we know what you’re offering.
We do not compete with finance brokers. We deal directly
with our customers, and generally manage the loans on their behalf. We will
give a quick no. An indication of whether or not we wish to proceed may take up
to half a day, whereon, we can provide indicative terms for your consideration.
