Manage episode 299095843 series 2965970
Dealing with private lenders can be tricky. They often see good borrowers in desperate situations. These lenders often have to pay a lot of third party fees for deal origination and advisor commissions, so they need to make that up from the borrower. Without information, these borrowers can be exploited as a result. Have a listen to the episode to get the details.
As we mentioned in the episode, a lot MICs out there have to pay fees to brokers to get them deals and to advisors to get them lending capital. These simultaneously increase the rates and fees they have to charge borrowers to lend money and decrease the rate of return for investors. Cannect’s ability to generate its own deals and raise its own investment capital means that people can borrow at a cheaper rate and investors can earn a better return. Cannect prices based on only two things: home equity and exit strategy, so we never take advantage of a borrower’s level of desperation to price higher. If the rate you get from a private lender sounds ridiculous when you have a lot of equity in your home, it probably is. Cannect will have a better rate for you and our salaried staff will work with you to get to lower cost capital afterwards.
Give us a call today: 416-766-2666
0:00 - Intro 1:15 - What is a private lender? 6:45 - How Cannect is different from other private lenders. 13:20 - Marcus provides a solution for lending behind a collateralized charge in second or third position. 16:35 - The elegance in the solution is the exit. 19:10 - Marcus outlines Cannect’s cheaper pricing terms to a prospective borrower. 25:44 - Cannect’s requirements to offer a home equity loan. 27:13 - Marcus explains the bank’s incentives to a caller examining a refinance.
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