Private Money (mortgage) Lending
So I have been approached by an investor with an opportunity to provide a private mortgage on a fix and flip. I've never done any PML but I do want to start. I'm trying to educate myself as quickly as possible. Here are the terms the borrower is seeking. I have thoughts on some of these items but would love to hear from others with experience.
- Borrower (is a being coached by a friend) - has been flipping for 3 years.
- LTV - 50-60% (I think the CMA is high but the LTV is good either way)
- $60k loan amount
- 12% int, compounding
- 12 month term
- interest and principle paid at close
- Borrow has already purchased the property and nearly 80% of the repairs are complete - I visited the property and the rehab is looking good.
Would love to know your thoughts, feelings, ideas...
Thanks.
JC