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.

Private Money always finds a place to go. Private Investors look for places of high return to place their money, and they also look for highly appreciating assets. Investors are wondering how the “Cash for Clunkers” incentive program will affect the value of their vintage cars. Actually, if many people turn in their old cars, then vintage cars will become more valuable.

If you’re interested in vintage cars, check out the current news article in the Examiner “Exotic Cars 101: How will ‘Cash for Clunkers’ affect or apply to vintage exotic cars?” which talks about how President Obama’s new “Cash for Clunkers” will affect the vintage or exotic car market. It’s notable that the “Cash for Clunkers” program only talks about “old cars” and “gas guzzlers” rather than vintage, antique, racing, performance, luxury, limited edition, exotic, classic, collectible, or sports cars.

So there still may be a business in restoring vintage cars and attracting private money.

If you’re looking for private investors consider what Access To Private Money can do for you.