This was a good article. Because I am a loan broker, I see how the big loan companies mitigate risk. They look for important documents and factors that the average person would not look for. I will soon be loaning out my own money, but will be sure to follow virtually all the guidelines of the big lenders. This will reduce my risk. -In the meantime, I set up loans for investors with either companies or private individuals. I use the same big company guidelines with the private individual lenders- to reduce their risk.
-One thing the article did not go into too much specifically- was the fact that in foreclosure states, if the client does not pay the monthly payment, that the property can go into foreclosure and if so the lender would get the house. Assuming there is some equity in the house, that could be a good position to be in. As always, the main plan is to just lend, receive interest, and after the borrower sells the house- the lender will be paid off and go to the next deal.
Our capital group may be seeking funding partners, depending on how much liquidity you have, your risk tolerance, and stance on the approach. We brokered $46m in financing deals last year, and are on pace to double or triple that this year.
