Hard money lending HML

[Peter B.]

Hello BP,

I have an opportunity to lend money to a GC who has 2 properties that have been in a fire. Properties are 2 town-homes and they have not been completely destroyed but they do need work.

The loan will be about 33% of the ARV for each of the properties (basically the value of the land).

Here are my questions:

1. What should I look out for when lending to properties that are not insurable?

2. Will any of you ( the seasoned HML ers) lend on such properties ?

3. What is a usual duration for such a contract (GC wants the loan for 6 months) ?

Thanks in advance for your help.

Peter B