Direct lenders turning dreams into realities.

Even in a flourishing real estate market that never seems to lose its luster, developers are discovering that financing the acquisition and development of raw land without other collateral will get them turned away by traditional lenders. Direct private lenders such as Kennedy Funding are the ones that are making it happen.

In 2005, opportunities exist for the developer who knows where to look. The raw land buyer often finds it very difficult to secure acquisition and development money--particularly in foreign countries--for the simple reason that some lenders cannot see the value in "just" land; they are trained to assess apparent value without regard to potential value, and focus on cash flow and credit.

The risk factors are simply too strong for the traditional lending community. And then there is the additional pressure of time: the local politics, the anxious co-investors, even the weather can create pressures that elicit negative reactions from the managers of the long, arduous, traditional lending process.

Direct lenders meet the challenge. Kennedy Funding, one of the nation's largest private hard money enterprises, welcomes raw land as collateral. Following our own quick and thorough evaluation process, we can make commitments in as little as 24 hours, closing just a handful of days later.

It can make all the difference to a developer, especially in a hyper-competitive environment.

The opportunity open to private lenders has expanded far beyond distress loans and emergency bailouts. Diversifying beyond traditional commercial and residential real estate, Kennedy has funded a golf course in southern Maine, a small commercial airline, resort communities in Fiji and Mexico, amusement parks, sports complexes, tv and radio stations, hotels, and more.

We willingly play the role of outside financial source, augmenting or replacing the traditional lenders whenever the situation demands it. Occasionally, a bridge loan from a private lender buys the borrower just enough time to put his house in order, reserving the option to return to the banks at a later date and refinance at a lower rate.

Yet, although the private lender loan begins with a higher rate, this may not be the case when all aspects are fully considered. Prepayment penalties, restrictive conditions, equity participation and certain marketing lures may put a rosy tint on a lower rate loan that does not hold up under scrutiny. Plus there is one undeniable advantage to working with a direct private lender: speed. The streamlined process at Kennedy Funding greatly reduces the paperwork and review procedures. A second advantage is professional guidance.

At Kennedy Funding, it is totally in our own interest to have the developer succeed, and guiding them through the loan process with personal attention is an essential part of our model. Our belief in the power of a mutually beneficial business relationship supersedes the usual adversarial borrower-lender relationship, and this intangible asset can ultimately save the borrower from a host of unexpected costs.

The flexibility of the private lender is our ultimate calling card. From flawed credit to a shaky cash flow to foreclosures or bankruptcies or property workouts, the borrower approaching Kennedy Funding with a non-traditional situation encounters an able, creative, experienced staff, ready to find a solution that benefits him.

Kennedy Funding operates in a can-do loan environment. And in the long run, rapid, efficient funding, even on uneven terrain, more than compensates for a higher cost factor. Closing the deal is still preferable to letting it get away.