i am considering funding a loan with my own money for a client of mine. it will be a small 2nd mortgage and the borrower is willing to pay whatever it takes to get the $$$. I dont plan on taking advantage of the situation but I would like to make sure I can recoup my $$ eventually, and be compensated for my risk. Couple questions for you whizzes on this site…
- Where can I go to sell this note once its funded so I can recoup my investment? I know there is a market, but dont know where to find it…
- Do I have to wait until the note is seasoned for a period of time before i can sell it? would it be better or worse to wait to sell…assuming the loan is performing?
- Where can I get an idea of what loan types (2 year ballon, IO, etc.) are going to be most attractive to investors?
- I am familiar with conventional financing and their underwritting standards so I assume a similar method is applied to assesing interest rates, discount point, etc for hard money. Where can I find out info on this?
This is a great opportunity for me to get in hard $$ lending, I can start small, just dont wanna make a mistake. I wanna help my client, and make a buck, but I also wanna make sure Im not hurting myself in the mean time.
Thanks in advance for the help, fell free to give me any advice that you think might be beneficial…