Most private and hard money mortgage lenders use external capital sources to recapitalize and run their lending business. In this video, Rocky Butani explains 5 capital structures used by private lenders, why it matters, and how loan originators can find new capital sources.
The 5 Capital Structures:
1) Mortgage Investors - Individual note / trust deed investors (table funding)
2) Fund and Portfolio - Use a bank credit line and keep loans on books
3) Fund and Sell - Use own funds to close and sell to secondary market
4) Partnerships - Broker to other lender, correspondent, wholesale
5) Mortgage Fund - Pool many investors
LOAN ORIGINATORS: Check out the Capital Directory on our website:
REAL ESTATE INVESTORS: Search for direct private & hard money lenders:
00:00 Introduction
00:32 Should Real Estate Investors Care?
02:10 Sturcture 1 - Mortgage Investors
03:19 Structure 2 - Fund and Portfolio
04:29 Structure 3 - Fund and Sell
05:38 Structure 4 - Partnerships
07:26 Structure 5 - Mortgage Fund
08:52 How to Find Capital Providers
Private Lender Link, Inc. is licensed by the California Department of Real Estate (CA DRE Lic. 02057741). Rocky Butani is the company's designated officer: CA DRE Broker Lic. 01893537
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By: Private Lender Link
Title: Capital Structures Used by Private & Hard Money Lenders
Sourced From: www.youtube.com/watch?v=g7xgoITW_KM
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