Financing In South Florida

For the last 24 months I have seen a surge in borrowers seeking private money to solve their real estate purchases and refinance issues. Certainly the lack of financial programs and the current tightening of lending guidelines has been a contributing factor. Nevertheless, many borrowers seem to be OK with the situation as well as the lender. Most individuals would be surprised but the borrower is in most cases not really hurting for money. They usually come in with 40% to 50% down for the purchase, so the loan amount typically is small and the additional interest rate charged is not a deal breaker. In other hand we were able to refinance one for over 2 million dollars.

Is the lender looking to pick up a distressed property? Not really. There are many sophisticated investors who simply would like a return on their investment; they absolutely have no interest in acquiring the property. They will if the borrower does not repay the loan, but only for the reason to recapture their investment. This leads to a win-win situation.

Is it all rosy? It can be if you work with reputable parties that adhere to federal and state lending guidelines. Read everything upfront and always get a Good Faith Estimate ahead of time and make them stick to it. Make sure you understand completely the terms of the loan. Always have someone represent your interest. My best advise; get it in writing. Good Luck.