Here is some good advice for anyone looking for a Private Money Loan .....
In the Private Funds industry there are a lot of unknowns, and so is it any wonder why intending Borrowers can't, (or won't), commit to the engagement of a single Broker (or Finance Agent) to source their much needed funding.
This situation is common place throughout the private money maketplace and we often see the same deal presented to us by different Brokers, with requests for different loan amounts and / or perhaps different lending terms.
When a deal gets shopped around the market by different people, and/or people without a direct authority from any intending Borrower, several bad things often happen;
1/ Any Deal being presented by multiple parties, which includes differing sets of deal information will only add confusion to any interested Lender, and often is the case that all interested Lenders will become disinterested in advancing any funds pretty quickly. In some instances this can be a toal disaster, particuarly if a deal is a tough one to finance (i.e. because of its location or lack of pre-sales), because sometimes there are very limited lender options for a particular deal, and the last thing any Borrower wants to do is burn the only lender that might be able to fund them.
2/ The credibility of the Borrower becomes eroded, from the Lenders viewpoint. This can only add to increased fees and / or harder loan terms being issued, should an interested Lender be identified.
3/ Significant problems often arise for Borrowers where disgruntlled Brokers (or Agents) are involved. We have seen many occurrences involving unethical Brokers who foresee the business going from their grasp, particuarly where there are two or three Brokers involved, as often the disgruntled Broker commences lodging caveats and/or equitable mortgages over the Brrowers Real Property Assets, thereby preventingany new mortgages being commissioned.
For those looking for a Private Loan it is far better to appoint a single trusted Broker or Agent to source funding for you. The best way to check the credentials of any Broker is to firstly spend some time talking to him or her, i.e. face to face, (so you can get a feel for the Brokers level of experience and body language at your meetings), and secondly, not to enter into any questionable broking agreements where broking fees automatically become due and payable just because the Broker gets the Borrower an Expression of Interest (EoI), of Letter of Offer (ILO) from a probable Lender.
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