Video Transcript
Hi and welcome to today's video my name is Tarek Omar I ‘am the CEO of Royce Stone Capital. If you're watching this video it's most likely because you're a borrower that's looking for a private lender.
The Right Private Lender For Your Deal
The thing is though not all private lenders are equal, also not all private lenders are suited to your deal type.
When private lending goes bad
More often than not the reason deals go wrong between borrowers and lenders is because the right deal has not been put forward to the right lender.
Funding deal specialisation
You see just as you're a borrower and you specialize in your line of work there are lenders that specialize in different types of loans.
Some lenders like to lend on developments, some like to lend only on, assets some like to lend on regional properties, some like to lend on metropolitan properties, some lenders prefer a higher risk so they'll lend to a higher LVR, some only are quite conservative and they'll lend to a standard LVR.
Some lenders like first mortgages, some like second mortgage, some like caveats.
So it's really important that if you're working with a lender you work with the lender that understands your project, what you're working on and also understands your business and what you're trying to achieve.
Better funding terms
co-alignment between the lender and borrower is critical and that is why you as a borrower need to make sure that the lender you're working with is co-aligned with your end goals in mind and that will make the difference between a successful outcome and a non-successful outcome.
Understanding risk
But more importantly it allows you to achieve better terms if a lender has better understanding of your project or what the risk are in the project. Which then allows for better pricing and deal terms for you.
To read more about private lending in Australia, you can read more from the RBA
