Private Mortgage
Market - What we don’t offer.
Firstly, we don’t offer glossy marketing brochures.
Sorry. Hopefully, our words and track record (references on our web site) will
generate your initial contact.
Some extravagant claims are made by lenders/mortgage
managers/brokers in this “private” niche market. Today, I’m telling you what we don’t offer.
Access to hundreds
of private lenders? NO!
Ours is almost a “cottage industry” approach. We
handle only very few loans, and generally one at a time. We are simple folk! If
it makes sense in the first 30 seconds of discussion, and subsequent
information supports that discussion, then chances are the loan will be made.
Firstly, our loans are genuinely “private” and we
work for about 12 private lenders on a continuing basis, providing us with a
consistent flow of funds and sufficient perspective and risk assessment. If a
well presented deal doesn’t make sense after discussion with three private
lenders, each of whom have different capacity to fund at various times, and
different risk appetites, chances are it isn’t for us.
If it is “shopped” any more than that, the deal may
also carry forward its own self-fulfilling negative outcome. Ours is a small
marketplace.
We don’t broker brokers’ deals.
Interest rates at
10%pa. or better? NO!
At very best,
our current interest rate is probably 11%pa. And there are few “very best” proposals out there. Pricing
is specifically dependant on type of security, location, urgency, amount, and
which lender has funds available.
Generally speaking, for first mortgages, our range
will presently be in the 12.50%pa to 15%pa range. For second mortgages, this
range would increase to (say) 20%pa to 24%pa (and the loan may be blended to
increase LVR up to 80% maximum) to
provide a weighted average rate.
Our preferred range - $0.50 M to $3.00 M. Maximum
at present is in the area of $10.00 M, though this would only apply in respect
of very well located, completed strata units.
Development loans? Maybe. It’d want to be a
cracker.
Fundamentally asset based, we will consider
worthwhile transactions where the exit strategy is verifiable sale or
transition back to institutional funding once the borrower has corrected the
usual reasons for institutional rejection –
Arrear Receivership Financials not current Previous credit issues
Distressed assets Property
in the possession of another mortgagee (we’ll at least listen)
Urgency – Incapacity to complete in time
Private Equity
(either development or completed stock eg. Wholesale purchase of completed strata
units from Receiver for retail onsale) – Maybe
We are very selective and you need to know
precisely what it is you are looking for at first point of contact. Your
proposal would need to pass the 30 second rule.
Little Rock does not do anything else. We are not
all things to all borrowers. Call us. We’ll listen.
www.littlerockprivatemortgage.org
Check us out for genuine Private Mortgage Investments or email steven@littlerockprivatemortgage.org
Check us out for genuine Private Mortgage Investments or email steven@littlerockprivatemortgage.org
