Just recently we all had a little debate over how to lend and to whom…I have 3 different deals that my attorney and paralegal are in the due dilligence process of before I fund them…
First deal is a 10 family in Florida worth 600k with an annual rent roll of 90k a year…Owned free and clear…Loan is 300k…Deed in lieu…Prepaid interest and points off the top…All closing costs and legal fees paid by borrower…1 year loan…
Second deal is a RE investor buying a foreclosure…Buy price 75k…Investor putting in 30k of his own money …Loan is 45k for 1 year…Home is worth in the area of 135k-150k…Deed in Lieu…Prepaid interest and points off the top…1 year loan
Third deal…NOO…Refi cashout…Owned free and clear…House worth 225k…Loan is 75k…1 year loan…Prepaid interest and points off the top…Deed in lieu…
All 3 of these loans * I * feel are very low risk high reward loans…In the event of a default the borrower loses…This in my opinion is the way the lending process should have been structured all along…Lending to someone with no money invested imho is suicide in todays day and age…
All loans are first position only…