Wow thats pretty quick for my standards but I’m getting more used to commercial loans now I assume. I’ve never been able to get a bank to close quicker than three weeks, do you use a smaller charter?
It was a commercial loan (to my LLC). Yes, I use a small local bank that keeps all their loans in their portfolio. They can move fast when they want to.
Mike
My private investors are not looking to do any deals other than mine. These are people that I know from previous business, and they actually approached me about getting involved when they saw what I was doing.
Having said that, I think it’s a financing model that can be replicated by just about anyone. Investors are greedy, thankfully, so when they see that someone is making money by doing something, they will typically want “in.”
Offering 3 points/12 percent for six months provides them with a tasty 18% yield (or better if repaid sooner) that they can’t get anywhere else, and because we know each other well the process is painless. Heck, the first two deals I don’t think we even signed notes or security documents, but then I suggested that we do that in case something happens to me…I would want their claims on the record.
Paul,
I would go so far as to say YOUR model maybe one of the few options some/most investors will have if things really get bad from this credit crunch.
The bottom line is this…You CAN make money, no matter what ANY market is doing, by looking for solutions that make all parties winners. I think your financing approach is a perfect example.