Alan Cowgill Interviews Ron LeGrand
Copyright © 2003-
Page 12

Ron LeGrand
Just ordinary people, I have some investors that have pretty substantial assets and other ones that don’t. Most people spend their entire lives just doing
whatever they can to put away money. Sometimes that takes years and sometimes it happens overnight. Things happen, people sell properties and
people come into money from various means.

I find that that average person that I have making loans probably has from $25K to $250K available capital. Some of them have more of course. They are not tycoons and they are not Bill Gates. They are just people trying to get through life and they are trying to get the best return on their money the best they can -- safely.

Alan Cowgill
I heard of a private lender that was getting 15% and wanted five points, plus prepayment penalties. But then he wanted to add on fees like a mortgage broker would.

Ron LeGrand
Well that’s not a private lender, that’s someone who’s in the business. Truthfully, I wouldn’t touch that one with a ten foot pole. You are either a private lender or a mortgage broker and in reality that individual is actually in the business of making loans.

The numbers you just described, you can beat those all day long going through a mortgage broker. Of course if it’s your money you get to do what you want to with it, don’t you? You get to make the rules so if you want to those to be the rules, great. But, frankly that’s going to be a tough sale, because the market will dictate cheaper rates and cheaper terms anyway.

I find the private lenders that I deal with would rather have me just handle it. They don’t want the grief they don’t want to have to worry about it. Whether I am