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FAQs Also See: |
Kennedy Loan Funding Frequently Asked Questions In general, how is private money used? Many ways. Commonly, as a bridge loan, generally a short to medium term solution (1-6 years). Used for all types of real estate secured financing: commercial retail, restaurants, hotels/motels, marinas, elder care facilities, industrial, agricultural, raw land, land development, construction, rehab, multi-family and residential development. What are the interest rates like? Typically range from 9 to 18%. This is determined by looking at a combination of factors: (a) LTV ratio, (b) strength of borrower, (c) condition/desirability of property, (d) actual cash-in or real equity contributed by borrower. Isn’t that a lot of money for a loan? Private lenders are usually more expensive than traditional sources such as banking institutions. The extra cost, though, is considered worth it due to the significant extra service provided. At Kennedy Funding, speed is a significant advantage, in every case. Compared to a traditional loan which could take months, our quick response generates savings which mitigate those costs. How fast can you close? We’ve been known to close loans in just one or two days. Typically, however, it’s about 1-2 weeks. (Remember: We can only move quickly if the borrower, broker, and other third parties are also moving quickly. In short, if everyone is cooperating.) Top |
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