I admit, I laugh about half a dozen times a week at phony competing offers people tell me that they have from some other private money or hard money investor, who's going to give them unbelievable terms that nobody else in the industry is offering.
Sorry, but the super-amazing terms just don't exist. There's not a benevolent funding source in the California private money / hard money space that will give ultra low rates at super high Loan To Value ratios, especially in this new era of increased Attorney General activism.
The best pricing that I've found on private money loans is 5.99% to 6.99% Interest-Only for three years on high-end or trophy Single Family Residential investment properties, topping out at 60% Loan To Value.
What's funny when I get these calls or emails is that it feels like I'm a car salesman on the receiving end of a customer coming in to make me some silly offer:
"Such and such dealership said they'd sell me this car for $22,000 with 0% financing over 15 years," on a car with a $45,000 MSRP.
As a salesman, you'd just want to say, "What the heck are you doing here? That's your deal. Come on - I'm going with you to buy 20 of those cars for myself! Let's go before they're all sold out!"
Ninety-five percent of the people I work with are straight forward in their representations and have a serious need to obtain financing in this tight credit market. But for the other five percent, they fill that comedic void in life by trying to pull a fast one on me, which instinctively tells me they don't have financing and more than likely, there's something wrong with borrower and/or the property is in shambles. They're definitely hiding something.
I'd really like to believe in unicorns and also believe that there's a private money or hard money investor offering 80% LTV at 6% for people less than three years out of a short sale, bankruptcy, or foreclosure, because I'd be able to close twenty loans in the next month with a program like that. Until then, I'll continue to laugh when some slick price-shopper tries getting me to take the bait of their phantom competing offer from their unicorn lending source.