{"id":398,"date":"2011-12-20T14:16:57","date_gmt":"2011-12-20T21:16:57","guid":{"rendered":"http:\/\/privatemoneysource.com\/broker-blog\/?p=398"},"modified":"2011-12-20T14:16:57","modified_gmt":"2011-12-20T21:16:57","slug":"private-money-5-donts-and-5-dos","status":"publish","type":"post","link":"https:\/\/privatemoneysource.com\/broker-blog\/?p=398","title":{"rendered":"Private Money – 5 DONT's and 5 DOs"},"content":{"rendered":"

Clay Sparkman<\/em>
\n<\/strong>
\nI would say that as much as 75% of our loans are initiated by third-party loan brokers.\u00a0 We rely heavily on our wholesale broker relationships and dearly value the strong working relationships that we have.\u00a0 As much as we love our relationships with brokers, it is an ongoing challenge to develop new relationships.
\nPerhaps the greatest challenge I find in working with loan professionals is that most have received their training in the institutional money realm.\u00a0 As such, they often have difficulty adapting to the very different approach required for brokering private money loans.
\nI thought it might be worthwhile to lay out a few <\/strong>do<\/strong>s and <\/strong>don\u2019t<\/strong>s as helpful guidelines for brokers adapting to the unfamiliar demands of private money lending.\u00a0 So here you go.
\nDon\u2019t<\/span><\/strong>s<\/span>
\n(1)\u00a0\u00a0\u00a0\u00a0 Don\u2019t Spin or tweak or hide information regarding the particulars of a loan.\u00a0 That might work with banks, but it doesn\u2019t go over well in the world of private money.\u00a0 We are trying to get the whole picture in order to make a sensible decision on a loan.\u00a0 If something doesn\u2019t line up quite right, we will generally notice.\u00a0 If there are inconsistencies we will tend to shy away from the loan.
\n(2)\u00a0\u00a0\u00a0\u00a0 Don\u2019t think that: private money is a good source for everything that the banks won\u2019t do because private money parameters are more relaxed across the board.\u00a0 It is not that simple.\u00a0 Generally speaking, private money is more rigid when it comes to equity requirements and more relaxed, given sufficient equity, regarding other funding criteria.\u00a0 (You\u2019d be surprised at how many people come to me looking for a 100% CLTV second to top off a residential deal; this is not the type of thing private money was made for.)
\n(3)\u00a0\u00a0\u00a0\u00a0 Don\u2019t submit individual tax returns with your files.\u00a0 We almost always go stated income with individual borrowers.\u00a0 (However, we do generally require company financials when an organization is involved.)
\n(4)\u00a0\u00a0\u00a0\u00a0 Don\u2019t drop the ball.\u00a0 Banks are like machines stamping out large volumes of loans.\u00a0 In a sense they are indifferent.\u00a0 Private money, on the other hand, is much more personal.\u00a0 You work directly with a few people and those people get really involved and work hard on your file and are directly accountable to other people.\u00a0 It is important to be vigilant with regard to your part in the loan process because effectively, you are part of a bigger team.
\n(5)\u00a0\u00a0\u00a0\u00a0 Don\u2019t get discouraged easily.\u00a0 Putting private money loans together is hard work, but if you take the time to learn how to do it, you will be rewarded.
\nDo<\/span><\/strong>s<\/span>
\n(1)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Do submit a summary cover summary sheet with every file.
\n(2)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Do submit property and value information with every file.
\n(3)\u00a0\u00a0\u00a0\u00a0 Do quote all particulars to your borrower early in the transaction.\u00a0 Some brokers seem to think that if they don\u2019t mention all the fees and points, maybe a borrower won\u2019t notice.\u00a0 Borrowers always notice.\u00a0 It is better to put all the facts out there right up front.\u00a0 You will be doing yourself a favor.\u00a0 After all, why work on a loan that never was going to happen.
\n(4)\u00a0\u00a0\u00a0\u00a0 Do take the time to learn about our loan programs, guidelines, process, and packaging guidelines.\u00a0 You will find useful information on our web site.
\nPrograms: http:\/\/www.privatemoneysource.com\/commercial_loans.php<\/a>
\nGuidelines http:\/\/www.privatemoneysource.com\/guidelines.php<\/a>
\nProcess: http:\/\/www.privatemoneysource.com\/process.php<\/a>
\nPackaging Guidelines: http:\/\/www.privatemoneysource.com\/packaging.php<\/a>
\n(5)\u00a0\u00a0\u00a0\u00a0 Do feel free to utilize us as a source of education on private money.\u00a0 That is how we view ourselves.\u00a0 We will always have time to answer your questions and discuss your transactions.\u00a0 We don\u2019t care how much you know. We care that you are interested in learning and desire to bring professional values to the table.
\n\u2013 Clay (clay@privatemoneysource.com, 503-476-2909)
\nClay is Vice President of Fairfield Financial, a primary source for private money since 1964.\u00a0 Fairfield is currently targeting loans in OR, WA, AK, CA, CO, ID, FL, GA, ID, MT, NV, NY, OK and TX.\u00a0 To submit a loan to Fairfield for consideration: <\/em>http:\/\/www.privatemoneysource.com\/loanproposal.php<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Clay Sparkman I would say that as much as 75% of our loans are initiated by third-party loan brokers.\u00a0 We rely heavily on our wholesale broker relationships and dearly value the strong working relationships that we have.\u00a0 As much as we love our relationships with brokers, it is an ongoing challenge to develop new relationships. […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_s2mail":""},"categories":[8,9,25,26],"tags":[42,43,46,54,55,58],"_links":{"self":[{"href":"https:\/\/privatemoneysource.com\/broker-blog\/index.php?rest_route=\/wp\/v2\/posts\/398"}],"collection":[{"href":"https:\/\/privatemoneysource.com\/broker-blog\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/privatemoneysource.com\/broker-blog\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/privatemoneysource.com\/broker-blog\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/privatemoneysource.com\/broker-blog\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=398"}],"version-history":[{"count":0,"href":"https:\/\/privatemoneysource.com\/broker-blog\/index.php?rest_route=\/wp\/v2\/posts\/398\/revisions"}],"wp:attachment":[{"href":"https:\/\/privatemoneysource.com\/broker-blog\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=398"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/privatemoneysource.com\/broker-blog\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=398"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/privatemoneysource.com\/broker-blog\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=398"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}