Chapter 3

Typical Borrowers

There are a number of reasons why borrowers require private money loans. Some of these reasons could be, but are not limited to the following:

Borrowers that need money quickly

Borrowers who have lost bank loans because of excessive conditions, declines or any other reason

Borrowers who do not want to waste their time undergoing the hassle of processing an institutional or bank loan

Borrowers interested in ground up construction

Borrowers who need a loan that has flexible conditions

Borrower has the opportunity to gain investment by utilizing the equity in their real estate.

Borrower is a non-profit organization (ex: churches, charities, etc.)

Borrower is in unfortunate circumstances that make it difficult for them to obtain bank assistance, circumstances such as:

® Poor credit

® Bankruptcy

® Irrevocable Trusts, etc.

® Tax Liens (estate, federal and state taxes, etc.)

® Other Liens (property taxes, judgment liens, etc.)

® Receivership or Foreclosure

® Property held in Trusts, Probate, etc.

® Divorce

® Unemployment

® Medical emergencies

® Etc.

Borrower has property with certain characteristics that make it difficult for them to obtain a loan from the bank, characteristics such as:

® A high vacancy-loan is required to increase the occupancy of the income property

® Partial construction of building or near completion

® Seismic retrofitting

® Property improvements

® Etc.