4.6.2012 – Why Us?

When I first learned about Source Capital and what they did, I had a limited frame of reference. I figured there was only one type of borrower that would need a private lender’s services. Some of you reading this may have the same initial thought. I am talking about the preconceived idea that the only reason someone would contact Source Capital is because they were turned down by a bank based on their credit history. Although this is the case with some, there are several other more common reasons a borrower may seek out a private money loan.

Because of inflexible funding criteria and mandatory requirements for loan qualification, people with perfect credit history may find themselves searching for alternative financing options. For those with an urgency in acquiring funds, Source Capital is a viable options due to their ability to close loans more quickly than banks and conventional financial institutions whose strict regulations slow down the process.

When time is of the essence, traditional lenders generally can not meet a borrower’s needs. Source Capital requires a lot less documentation than a traditional lender would. The reduction in paperwork and red tape of having to deal with a more stringent loan committee process speeds things up considerably.

Source Capital is extremely knowledgeable of the ever changing laws in this industry. Even as they abide by all legal channels, they still have more flexibility when funding a loan. There is more room for creative problem solving since underwriting guidelines and other rules are not as rigid when working with a private lender.

Private money lenders do charge a higher interest rate, as well as fees sufficient enough to lessen a project’s risk. Because of this, a borrowers history and level of commitment are not the only deciding factors. The most important component is the evaluation of the real estate. This helps determine both the fees and down payment needed to further lessen the risk of loss.

While a traditional bank may decline a loan based solely on a credit score, previous bankruptcy or foreclosure, a private lender has more room to explore options. Source Capital makes its decisions based first and foremost on the value of the asset or property. It considers the strength of the borrower, second.

Private or hard money, as it is also called, is used by a variety of borrowers ranging from high net worth individuals to sophisticated real estate investors and developers. The speed and simplicity of loans funded through Source Capital is attractive to people in many situations looking for financial assistance.

To learn more about private lending options, investment opportunities and what exactly Source Capital does, call Sacha or Pat at 858.705.6144 or email them using their online form. Have a great weekend! -Sindi Somers