PMI for HML?
Deal complete! lol After working vigorously on closing that wholesale deal with the 8-plex I had under contract, I did it! My buyer came through and I netted 51k. That said.. I've placed 20k of that in an intrest bearing account for tax time, and 4k of that in my new Roth IRA...
After all this time, dreaming of when I'd get that "lump sum" I've never had, and all the properties Id leverage with it... I've changed up the plan.. I want to be a Lender! it just seems like the right fit... Points+interest only payments= Vacation in Newport Beach! ok ok.. I'll stop ranting..
All jokes aside.. Lets say I find a flipper who could use 30-40k and I was willing to loan a max LTV of 65%.. What types of reassurance or "exits" might I have other than the secured property, If the borrower defaults? Might a private lender be the payee of a PMI policy?
Second... How hard would it be to liquidate the note if I needed to? (im assuming this is based on the borrowers credit?)
Thanks for reading and I cant wait for the answers! (If things go right... I'll be contacting a broker tomorrow (later today) to inform them of the funds I have to loan...
OOHHH wait a sec...
last question for this post... If I am consistant in making great returns with my personal money via HML, what would be needed if people loaned my entity the money to lend to end borrowers? would that be a securities issue?