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.

Private money is still out there. There’s a group, First American Financial Management Co., in Charlotte looking for small banks. They recently bought Community Bank of Rowan last week for about $16 million.

So, if you have the right kind business opportunity you can find private investors interested in funding your business. 

Tony Plath, banking and finance professor at UNC Charlotte, said that private investors usually wait until the banks hit bottom before they invest. Right now private-equity groups are beginning to get into the banking community, and that’s an indication that the recession is reaching the bottom.

For more information see Charlotte private-equity groups on the hunt for small banks.

If you think that private money could help your business, then  Access to Private Money may be able to get you to funding you want.

Remember the rage of the tube socks where the advertising was “one size fits all.” I recently checked online, and you can still get tube socks that say “One size fits all.” So I guess they are not all out of style.

One Size Fits Most

When it come to socks, the “one size fits all” size seemed to fit most people. But for the really small and the really large, they didn’t fit very well at all.

Private Investors Are Not All One Size

But when it comes to Private Investors and Private Money Lenders, one size doesn’t fit all. It seems simple enough. People are different. They all have different likes and dislikes, ideas and notions of what is reasonable under each circumstance.

But visitors to AccessToPrivateMoney.com keep asking:

“What Do ‘The Investors’ Want For ROI?”

The simple answer is “it all depends.” Each investor has an idea of what he or she would like to make with his/her money. The investor looks at the available projects and decides which seem to be likely candidates to give that type of return. If a project piques the investor’s interest, then the Private Money Investor will want to evaluate it to determine whether the investor can get the return he or she wants.

So… How Is The Private Investor Return Calculated?

Since each Private Investor makes his or her own choice about the return that he/she wants, there is no standard calculation for the ROI. However, every investor wants to be able to share in the profits of the project. That’s why they are investing in the first place.
They are not making loans with a set interest rate. So, they expect to get a percentage of the profits. How much an individual investor wants is up to that investor. But it falls in the range of 20% to 50% of the profits.

Will The Private Money Investor Get Their ROI?

Each project is evaluated by the investor to determine what percent of the profits will give the investor the overall return they want. And it can vary project by project because of the time and risk factor of the investment. Then, if the project would be able to generate the return the investor is seeking, the investor calculates the percentage of the profits that would give that return.

Why is 50% The Upper Limit?

Although it is not a hard and fast rule, the private investor doesn’t want to take too much out of the business. The investor doesn’t want to cripple the business by taking too much out. Also the investor doesn’t want to take so much out that the business owners have no incentive to make the business succeed. It’s a fine line to determine what’s fair and what will give the investment results the investor is seeking.

Every Investor Is Different

Back to the “one size fits all” answer that visitors to AccessToPrivateMoney.com want. Since there is no standard Private Money Investor, there is no standard ROI that an investor wants. The only way to find out what an individual investor wants is to submit your project into the private investor database and see who shows up as interested investors. Then at the investor meeting, that particular investor will say what that investor wants for a return. That’s the ROI for the project with that investor.

The FAQs http://accesstoprivatemoney.com/faqs.htm#f5 have been updated to give a short answer to this complex situation.