Would You Do This Deal? Lending Opportunity

[Luke H.]

Hi all
I hope all is well.  I was recently offered this, wanted to get feedback, questions, etc. 
Assume you have cash currently earning 4.6% in high yield savings.

Key Deal Points:
Loan Amount: $88,000
Lien Position: 1st position
Purchase Price: $120,000
Appraised Value: $250,000
Interest Rate/Return: 11% annual return
Term: 5-year balloon (meaning the entire principal and interest must be paid at the end of the term)
LTV ratio: 35.2%
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Licensed Lending company for contracts
RMLO package completed on buyers
Servicing company for payment

[Jay Hurst]

Quote from @Luke H.:

Hi all
I hope all is well.  I was recently offered this, wanted to get feedback, questions, etc. 
Assume you have cash currently earning 4.6% in high yield savings.

Key Deal Points:
Loan Amount: $88,000
Lien Position: 1st position
Purchase Price: $120,000
Appraised Value: $250,000
Interest Rate/Return: 11% annual return
Term: 5-year balloon (meaning the entire principal and interest must be paid at the end of the term)
LTV ratio: 35.2%
---
Licensed Lending company for contracts
RMLO package completed on buyers
Servicing company for payment

 You have not mentioned anything about the borrower. Understand you have great equity position but it is expensive, but more importantly  takes a lot of time and very distracting from other money making activities to foreclose. I never make a loan, no matter the equity position, that the past actions of the borrowers lead me to wonder if they will be likely to pay me back.  That is not everyone's thought process but it is mine.