Who, Me A Bank?
Question: You are being conned, or you are perpetrating a con, one or the other.
You should be able to figure out why this is so, and should be able to figure out how I know this positively with the limited amount of information you posted.
Answer: If a bank, with all its resources, finds a deal not to its liking, why would you want to finance it?
It’s a great way for him to sell properties to people who can’t afford them, and for you to be left holding properties worth less than the amount of the mortgage. If you do it often enough you won’t have to worry about investing your savings – you won’t have any. Hard Money lending is NOT for the novice. The potential high returns are in direct proportion to HIGH RISKS. You could have your money tied up (in bankruptcy)for a long time or loose ALL OF IT. Can’t afford to loose it – DON’T DO IT!!!!
You must know the area, the market, the borrower, the applicable law, etc. Also, it is NOT a passive investment. Also, If I am not mistaken, can’t you lose everything you put up if it is not a 1st mortgage and your loan is subordinate? I.e. if the house is foreclosed, typically the 1st mortgage would get paid off 1st (after taxes). Any left over would go to suborninate mortgage holders (again, unless I am misunderstanding what you are getting into). s
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