BiggerPockets

I had a good visit with another BP member today brainstorming. It was suggested that there was a real opportunity to make some short term high rate loans. Realtors and investors ALWAYS have profits and commissions spent before they actually receive them. They don't like waiting and most would take less if they could get the $ quicker. Sort of like Pay Day loan type loans for larger amounts specificcally for realtor/investors. What do you think? Could you use that option to get over a hump even though the rate would be high(5% or more per month). Just curious. Rich.

I appreciate the input. I have someone very familiar with the mortgage business interested in a JV. This is in the early planning stages, but it seems like a truly needed piece to the financing puzzle that many face today. And a good option for good returns on cash.

Interesting idea Rich.
I have actually done the reverse where I had the agent "carry" their fee for me saving me the out of pocket expense and a small note was created, secured by the property itself, and me personally of course.

I would be interested to know how you would intend on securing your position with the extension of funds going to the agent, as their is no property to secure the loan (unless they used their personal residence for security)

Not a new idea, though.

I remembered such ads in the Realtor magazine I used to get when I was one.

I just flipped through an old copy (3/08) and found an ad for Commission Express, commissionexpress.com.

The website is still there, so I guess they are still in business, and it seems they offer franchises for a franchise fee between $20k - $80k (woo-hoo!).

Personally, I can't see how any such commission advance could be secured by anything tangible. "Factoring" involves buying a receivable, not making a loan, so if the receivable is never paid...

I'm not sure securing these loans with autos would be a choice I would make (most auto owners have leverage above and beyond the value) but even in the case that they owned it outright, the last thing I want is a used car lot>

That said, I think you are on to something, but it semms "risky" to me without better security. The furtue pay is always a question mark too, so I would not go there.

I think personal home equity (and it had better be solid) would be the only way I would be willing to try this. Just my opinion.

Originally posted by nationwidepi

the last thing I want is a used car lot

Forget the used car lot. Buy the land, lease it back to your car rental and loan shark businesses. :mrgreen: