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Sometimes Borrowers Are Their Own Worst Enemy
by: Weston A. Jones
August 12, 2003
Borrowers are sometimes their own worst enemy. Once
a borrower gets to the point of getting a Hard Money
loan, they must be realistic about the outcome. Look
upon Hard Money as a good thing, not bad. You should
make a multiple of what you pay to get the money with
you exit strategy. At Mentor Financial Group, we make
millionaires. We are a part of your team to make you
a success.
Here are a few tips to follow:
- Be
up front. Don't hide things; eventually they
come out and it just wastes time.
- Keep
focused on the end result. Think of Hard
Money as a means to an end.
- Make
claims that are verifiable. Realize investors
still perform due diligence.
- Don't
change wants and needs in the middle or end of the
process. Investors hate uncertainty or change;
it is a red flag.
- Commit
and follow through on what you say. Don't
assume you know better than the investor.
-
Be patient and sell your deal. Know that
investors want to stick to the facts. Sell your
deal with facts, not by puffing and or with emotion.
- Do
what you and say what you do.
- Don't
shop your deal too much. Eventually, everyone
will see it and think something is wrong with it.
Shopping cheapens deals and your reputation.
- Prepare
yourself for ups and downs. Give yourself
enough time; typically 30-days. Keep your word and
be honest.
- Select
an experienced Hard Money team to help you.
- Upfront
fees - be careful. Deal with only reputable
lenders. If not, you might be taken advantage of.
- Finally,
realize that in Hard Money lending there are rules
and not rules at the same time. What I mean
is that generally speaking, lenders work on certain
parameters, but since they make the decision in
the end, they can make their own rules.
At Mentor Financial Group (“MFG”), our business is
to fund investments secured by trust deeds on commercial
real estate, including income producing properties
(i.e. apartments, office buildings, etc.), land and
development projects (i.e. construction loans, rehabs,
condo conversions, etc.) and non-owner occupied residential
properties.
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