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Why would borrowers pay 8.75% or more for a loan?

April 26, 2017borrowers loan pay

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Why would borrowers pay 8.75% or more for a loan?

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Opportunities exist for entrepreneurs to purchase properties below replacement cost and resell at significant profits. Other opportunities include renovations, re-tenanting, or construction activity for which bank financing is not available. Our loan rates are well below these profit margins, allowing our borrowers to make greater returns with their available equity capital.