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Private Money Investors in the JV Network Company network have become more cautious in their willingness to invest since the global economic crisis. Although they are still interested in placing their private money into good projects, they are taking more time to do their due diligence.

Private Money Funding At 100% Is Rare

The norm before the economic crisis was that a private investor would be willing to fund the entire project. That’s 100% funding. Now the private money investors are only willing to fund at 95% to 98%. Some private money investor may still fund a project at the 100% level, but that is rare in this economic climate.

Private Investors Use Business Trusts To Fund Projects

The other big change in the way many of the private money investors are making their offers to fund projects is that they are using a business trust type of arrangement as a means to provide funds.

Private Investors Will Provide Private Money For 95% To 98% Of Project Needs

What this means is that the request for funds will only be funded at 95% to 98% of the amount requested, and that the remaining 2% to 5% needed will have to be acquired from some other source prior to the investor giving any funds. In addition, the 2% to 5% must be in cash and placed into an escrow account before proceeding to get any funding documents prepared.

The Current Economic Climate Requires 2% To 5% Cash To Get
Big Money Funding

So in this economic climate you now need to have 2% to 5% of the funds necessary to make your project work already available prior to gaining any big money for funding a project from a private money investor in the JV Network Company’s investor network.

If this type of arrangement is something that you can live with, then the private money available through Access to Private Money may be able to get you to funding you want.

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This entry was posted on Tuesday, March 23rd, 2010 at 2:45 pm and is filed under Private Money, Private Money Funding Process. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.