Advantages of Pacific West over traditional lending institutions

• Pacific West has an efficient loan issuing process with less bureaucracy and can act much faster. When a borrower needs to close a loan quickly to take advantage of an immediate business opportunity, the opportunity can be far more profitable than the additional interest rate charged on the loan. A bank or lending institution may offer lower rates, but take too long to approve the loan.

• Pacific West has much more flexibility than a lending institution to grant the loan. The borrower may have a credit problem which prevents a bank or lending institution from making the loan due to its strict credit policies and regulations, regardless of the value of the property. While the focus is always on the property, Pacific West always checks to verify that the borrower can pay the loan interest and principal.

• The borrower may want to use the money for something other than to invest or purchase the property used as loan collateral. A lending institution or bank will often only allow loan proceeds to be invested directly in the property.

• Pacific West’s strategy is generally to hold the loan. We don't make loans with the intentions of selling them into a mortgage backed security in the securities market. Lenders that make loans under these circumstances may not make the loan.

• The borrower may have an existing loan on the property and the bank will not issue a second mortgage regardless of the remaining equity in the property. In some cases, when there is enough equity in the property to provide strong security for the Investor, Pacific West secures its loans in a junior position.

• Pacific West can be more flexible with the terms. The borrower may need special terms, such as an interest only loan that does not meet the specific guidelines of the bank.

• Bank and institutional lenders may have difficulty in evaluating a specialized property and will refuse to do the loan. The managers of Pacific West have years of experience valuing specialized properties and can make these kinds of difficult evaluations to determine a loan amount that protects the Investor’s interests.

• The borrower may want to use multiple properties as collateral for the loan. Banks have more restrictions regarding cross-collateralized loans.

• The borrower may have a thriving business that has a specific technical issue, such as a high ratio of accounts receivable, which disqualifies the borrower from a bank loan, regardless of the value of the property.

• The borrower has a long term relationship with Pacific West, and may simply prefer to do business with a known partner, regardless of a higher interest rate – to ensure probability of closing.

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