Private financing can be useful when timing matters, income is complex, a property needs work, or a conventional lender is not immediately available. It is not a substitute for a repayment plan.
Before arranging private financing, Mortgage Matchmaker reviews the property, the borrower’s complete financial picture, the loan-to-value ratio, requested term, legal costs, and the path out of the loan. That exit could be a bank refinance after documentation improves, a sale, a completed renovation, a business event, or another defined source of repayment.
The borrower pays the legal costs for both the borrower’s lawyer and the lender’s lawyer. Those costs, along with interest, fees, and the expected repayment date, should be understood before committing.
Monty’s view
A private mortgage makes sense when it solves a real timing or qualification problem and the exit is credible from day one.