Pulling my hair out... (and I don't have much!)

Who else is frustrated by the cumbersome, unwieldy and one-size fits all attitude by commercial lenders? It's taking me months to sort out mortgages on 3 unencumbered properties. Interbay Commercial for one are causing me no end of grief currently. Yes, there is a need for traditional lenders, but why do they have to suck the life out of you?

So, it got me thinking if there is an alternative to being beholden by these banks, having to provide your inside-leg measurement, forking out on endless fees, signing this form in triplicate and on and on and on. There is an alternative, it may not be scalable, but it doesn't need to be for little old me, I just need to find one person to be the bank. Of course it relies on letting people know there is a win/win opportunity to be had and it will only apply to a few people in your network but where there's a will there's a way I say.

After coming off the phone with a BM at the commercial lender (she was actually understanding, but was not in a position to change the system), it was clear I was going to have to suck it up and pay more fees for a requested warranty or do something different.

So what did I do? I took stock and thought there must be someone who'd like to be the bank and I wrote an email (one of which is copied below) to a couple of contacts . If nothing else, writing the email (and this article for that matter) allowed me to let off a little steam. At best, it could actually result in a nice little partnership between a lender and borrower.

I'm not going to talk about specifics obviously and I'm not that naive that I understand banks have procedures and protocols but do let me know if I'm away with the fairies on reading the email I sent out. I'd love to stick it to the man! Oh and if you know anyone wanting a secure return on an investment let me know:)

Morning mate, 

A comment you made on text the other day about ongoing interest just resonated with me. This could be interpreted as an opportune pitch, but hopefully you'll see it as a creative mind looking for a win/win solution:)

We currently have 4 of our properties without a mortgage. I've been speaking to a particular specialist lender since the New Year with a view to secure mortgages on two of them. It's a flipping painful and frustrating process. It got me thinking why should I give unwieldy banks my hard-earned cash as well as my inside leg measurement, if I can replace them with private investors. 

If I can provide the same security and conditions to a private investor as I would a bank, namely, 1st charge security with monthly interest payments, equating to a secure and decent return for the long-term, then some people who are earning bugger-all on their savings may be interested?

I'm attaching a recent valuation report on one of the properties which is just about to become fully tenanted (forgive the look of the outside - it has since been rendered). The property is valued at ￡437,000 but for lending purposes the bank would lend against a fire-sale value of ￡397,000.

Forgive me for quoting back the contents of a past conversation but I recall you saying you had a decent wedge sitting in your business account? I'm looking for a loan of up to ￡300,000 (75% LTV) to free up funds. I'd be able to provide a 1st charge on the property (ensuring you'd take control of the property if I default) and provide monthly interest of ￡1,062.50 at a rate of 4.25% p.a. 

We have no plans to sell this property for the time being but any loan would be repaid by swapping out with a mortgage or a sale. I'm looking for a minimum 18 month term up to 5 years, with a 6 month break clause after 12 months. 

Let me know if you (or even a business associate) may be interested and we can have a chat. I'll eventually get a mortgage if not, but I thought there was an opportunity to stick it to the man and both of us could benefit. 

Cheers

pod