Private Lenders' Podcast How to structure extension fees - #254
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Mar 11, 2025 Discover the ins and outs of structuring extension fees in private lending. The hosts share valuable strategies for maintaining positive borrower relationships while ensuring clear communication. Learn how to tackle negotiations effectively and establish equitable solutions that satisfy both lenders and borrowers. They also delve into the importance of setting clear expectations for capital investors and adapting to changing market conditions. Tune in for insights that can elevate your lending game!
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Early Mistake with Extensions
- Early on, Hard Money Bankers defaulted a good borrower for needing a loan extension.
- This mistake cost them future business with that borrower.
Handling Loan Extensions
- Always communicate with the borrower to understand their situation before handling extensions.
- Never extend loans for borrowers who aren't current on payments or have ghosted you.
Free Extensions for Good Borrowers
- Offer free extensions to good borrowers who only need a short extension (e.g., two weeks).
- This builds goodwill and encourages repeat business.