I am glad you viewed the site. I would love any other feedback you have on it.
Bottom line is where is the individual reonsiblity. Cant an “investor” know if they are making a good purchase or not? At the end of the day if the investor is not able to make any money neither are we. We want our investors to buy good deals. The amount of money the investor puts down has nothing to do with how good of a deal they are purchasing
For example Down Paymnet
A borrower is buying a property for $100,000
The lender makes the borrower put $20,000 Down
Lender Loan is $80,000
What if on that same property the borrower came to us and asked us to lend $80,000? The investor found or negociated a better deal and we think they should get credit for that. How is it risky for us to loan on a low LTV?
We are really doing safer deals for investor borrowers. Becuase for a borrower to do a loan without any money down they have to get a really good price. What does the amount of money being put down have to do with the value of the property? Nothing! We lend based on the value of the property and what the borrower is buying the home for. It is really that simple.
I love the feedback and would like to know what specifically makes you think that we are putting burrowers in “dangerous” situations?
I hope I am not coming accross arguementative, I just really belive in what we are offering. I belive that what our borrowers are doing is helping this econcomy and country. I really am intrested in your thoughts.
wriya,
Just out of curiousity is it your money that you are lending at such a high LTV or investors money?..I lend out my own money and I can tell you I would never lend to anyone without skin,equity,money whatever you want to call it in the game…If your method is working for you then I wish you the best…
Im actually lower than %55 LTV because I prepay myself my the interest and points off the top of the loan…So my money exposed to any one deal is very low ,in the area of %35 LTV…But yes on the actual loan Im at no higher than %60 LTV…I am using my own funds to fund these loans so I try to limit my exposure as much as possible…There is no holy grail when it comes to protection when funding hard money loans. But if you implement strong due diligence,have an excellent attorney and paralegal handling title work and background checks of the borrower to insure there is no fraud…Also use the deed in lieu of foreclosure to bypass lengthy foreclosure courts,prepay yourself on every loan for entire term and keep your LTV exposure as low as possible you lessen the risk considerably IMHO…Like I said earlier I only lend to people with equity,money in the %40+ range in my deals…My reasoning is the borrower wants to default its going to hurt them significantly…I will win in the end…You cant change the fact we are in first position…