Since most people are accustomed to conventional lending, they are surprised when they find out how flexible we can be on our underwriting of loans.

Please don’t assume that we can do anything regardless of how bad the situation is. The deal still has to make sense. But this is the thing that separates us most from conventional lenders and banks.

For example, banks want proof of where your down payment is coming from and how long you have had it. They also have restrictions on gifts for down payment. In many cases, if you receive a gift, you have to prove not only that it is a gift but the person who gave it to you also has to prove where they got it from.

On the other hand, with private money (at least with us) we do not care if your down payment is a gift and don’t require any kind of proof of how long you have had the money.

There are obviously a lot of other differences in the way we underwrite files. For instance, we don’t have any specific credit requirements and can lend to someone who has a recent foreclosure, short sale or banktruptcy. We can also lend on properties that need repairs made to them before a bank would lend on them.

In summary, the moral of the story is that private money will allow far greater flexibility than any bank loan. Right now, the banks are acting as if they are afraid to lend and look for reasons not to do the loan. In contrast, we want to lend and look for reasons that the loan does make sense.