Do You Like These Terms If You Are A HML?

[John Thedford]

I have a guy wanting some cash. He proposed the following:

1.We get blanket loan of $150,000 - $200,000, net out 2 pts up front, 12% interest from day received at title

2.Money is in title company and interest starts day 1....continues until paid off in full and closed....SAME MONTHLY PAYMENT IF THE MONEY IS BEING USED OR NOT

3.We can also use it as POF / exchange properties in and out w/ approval

4.Place security against properties as needed with mutual agreement and email only needed to title to authorize substitutions

5.When we sale property, money goes back to title to be used for new property...W/ APPROVAL

6.New property identified, money released to Seller (at mutual agreed percentage)

7.1pt on that release amount pd to John to cover his time for sending the email authorizing it.....SO EVERY TIME WE SUBSTITUTE A NEW PROPERTY YOU WILL MAKE ANOTHER POINT ON THAT NEW LOAN AMOUNT

What are your thoughts? I have typically been lending at 12% plus 4 points. Most of my borrowers pay back quickly which nets much higher APR. I just did two that netted almost 30% per anum APR and if I tie my cash up the way these guys want I will be tied to a lot lower APR. Would you take the above deal or pass?