anyone use Hard Money for a Note purchase?
got a lead from a broker about a 500 unit storage facility, performing note, appraised @ $5.5M, seller in middle of refi for $3.3M to pay off the balance, willing to sell note at $2.5M. im thinking of flipping this note but not sure how to or can i use hard money?
What will you collateralize the hard money loan with? Hard money lenders generally want ‘bricks and sticks’ kind of collateral…
Keith
right, with some “skin” in the game i can make this happen. thx KD
Budd,
I dont understand where there is that much of an arb opp to use hard money on this deal…You would need 5 mill + in collateral to close this deal using a HML…The deal sounds good if u were using your own money but to pay %17 (interest and points,fees,closing costs etc) to make an arb is dangerous…If you can post such huge collateral why not monetize your collateral and make the entire arb for yourself?
well i didnt factor in those other variables! im getting these great leads and i cant do anything with them :banghead THX Rook
Her’s another thought; who’s selling the note? The seller cannot sell a note that he’s paying on. Only the bank can sell the note. The only deal you may have is that you are te one who is lending the money to the current owner.