Hard money Loan...
Will TRY to keep this short...
A co-worker/good friend and I were talking about our re-financing and he mentioned he was looking for investors willing to make a hard loan to him. He needs to get below the $729k(?) maximum to keep his rate on his mortgage down...
I have $$$ sitting around in a money market fund which I was planning on using for an investment property.
I told him that if we could make this a win/win proposition I would be willing to loan him the $$$. I told him that I would be doing this more to help him out than to profit from the transaction.
I am not financially strapped and both he and I have very secure jobs.
My questions to you board members are...
1. This would be a fully legal transaction. Would this be a decent investment for me ?
2. At what rate would be FAIR for me and him?
3. What would you prognosticate the difference in ROI between this loan and taking the $$$ and purchasing an investment property in this economic climate (sf/bay area).
Thank you very much.