Pricing Asset Backed Hard Money Loans
The investor's small business primarily engages in asset-backed bridge loans (typically with terms of 2 to 24 months) and now plans to secure a credit line backed by existing collateral to expand lending scale. The investor asks what type of lender to approach and acceptable terms, noting that most banks show limited interest in such business.
I am in investor in a small business that makes asset backed hard money loans (typically 2-month to 24-month). We are looking for a line of credit against the current collateral to make additional loans. We are seeing a lot of opportunity. Loans include a mix of residential and commercial real estate and occasional vacant land. The lead manager has tremendous experience and thus the deals find him. What kind of lenders should I be looking for and on what terms. Clearly most banks are not going to be interested. Thank you.