Borrowers.

There are a number of reasons a borrower might seek LRPM private financing.

• Opportunity cost and timing
  We will take into account special circumstances and urgency
   
• Bridging finance requirement
   
• Generally, we require no formal valuation 
  There are exceptions, however, the applicant simply needs to honestly answer one question before talking to us – what would the subject property sell for were they to put it to the market in an orderly manner for sale in (say) 120 days. Simplistically, the answer to that is what the asset is currently worth.
   
• Not presently meeting standard institutional guidelines. “Transition” finance to bring your proposal to one acceptable by your bank, or perhaps your bank has too high an exposure into a particular area or asset class and you need time to source alternative institutional funding.
   
• Being primarily asset and “exit” based, private investors have no fixed parameters.
  Yes, it may be more expensive, but a personal relationship is developed based on commercial realities and not generic one size fits all decision making.
   
• Balance development stock and maturity of an existing loan.
  Sales are taking place, but you don’t want to be subjected to un-necessary pressure from your existing financier to drop prices – firstly because of bottom line development profit and secondly, it may undermine values for your future developments in the area.
   
• Intended quick property turnaround (e.g. renovation) may not warrant institutional funding delays
   
• No working capital/cash out restrictions and general flexibility of private investors
   
• Credit impairment. LRPM is asset focussed, performing our own internal due diligence, and no credit reports are required. 

 Ultimately, all credit decisions are made by our private lenders, though we remain involved in the process from receipt of an application to ultimate discharge (including default recovery) of a loan.