I had a great time chatting with Brad Lundgren of cobra Mortgage Services Ltd. (click here for their website). We discussed what private lending is with a particular focus on commercial transactions including hotels and motels. Yes you have read this correctly – hotels and motels. Brad also talked about why private lenders are important and his opinion on where conventional banks are now (think “under capitalized”).
You can watch our entire Google Hangout here:
Brad makes some good points about private lenders including:
1. Private lenders are more creative compared to conventional banks
2. Private lenders offer higher leverage compared to conventional banks
3. Private lenders charge more for their capital but it is meant to be used on a short term basis
Brad also pointed out that many people talk about the higher cost of capital from private lenders but if banks provided the same type of financing they too would charge higher interest rates and fees.
Even though our Google Hangout was cut short, Brad did make mention of a saying that I thought would make for a good quote:
“Horses for courses” – click here to see the definition
Get prepared for your next mortgage or loan.
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