Don’t Let Relationships Fool You
July 1, 2021
Do you place significant value on your relationships with your best borrowers? If you do, you’re not alone. And because you value those seasoned, well-qualified investors so highly, you—like many institutional private lenders—likely offer tiered rates and terms to accommodate them.
For private lenders just starting out, this strategy could prove troublesome.
Let’s take a look at some considerations private lenders, especially novices, often overlook when working with a borrower they already “know.”
Published in American Association of Private Lenders’ Private Lender Magazine Q3 2021 – page 56: