To Lend or Not to Lend

Investor · Charleston, SC · Member since 2024 · 16 posts · 6 votes

I have been presented with the opportunity to Lend to an investor on a property she owns free and clear.

"I am looking for a short term 90 day or less loan secured by the property for rehab costs of $15,000 @ 20% flat fee interest on a property I own free and clear. My goal is to finish the work in 30 days or less and then list it and sell it. We will do a promissory note with personal guarantee and a mortgage note lien to secure the funds you the house.

Purchased $190k

Repairs $25k

(I’ve put $10k of my own money in repairs already)

Selling for $279k"

what do i need to consider? Any tips?

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Mike GrudzienPro Member
Lender · Eugene, OR · Member since 2019 · 2k+ posts · 1k+ votes
1y
Reasonable terms, but you need you own experienced real estate lending attorney.
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Chris SeveneyBusiness Member
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Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
1y
Quote from @Kala Samuel:

I have been presented with the opportunity to Lend to an investor on a property she owns free and clear.
"I am looking for a short term 90 day or less loan secured by the property for rehab costs of $15,000 @ 20% flat fee interest on a property I own free and clear. My goal is to finish the work in 30 days or less and then list it and sell it. We will do a promissory note with personal guarantee and a mortgage note lien to secure the funds you the house.

Purchased $190k
Repairs $25k
(I’ve put $10k of my own money in repairs already)
Selling for $279k"
what do i need to consider? Any tips?

What lien position is this and what is the balance and status of any other liens.
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- Kala Samuel
  OP
  Investor · Charleston, SC · Member since 2024 · 16 posts · 6 votes
  1y
  Quote from @Chris Seveney:
  
  Quote from @Kala Samuel:
  
  I have been presented with the opportunity to Lend to an investor on a property she owns free and clear.
  "I am looking for a short term 90 day or less loan secured by the property for rehab costs of $15,000 @ 20% flat fee interest on a property I own free and clear. My goal is to finish the work in 30 days or less and then list it and sell it. We will do a promissory note with personal guarantee and a mortgage note lien to secure the funds you the house.
  
  Purchased $190k
  Repairs $25k
  (I’ve put $10k of my own money in repairs already)
  Selling for $279k"
  what do i need to consider? Any tips?
  
  What lien position is this and what is the balance and status of any other liens.
  1st position.
  No liens. Purchased with cash.
  0 Reply
- Kala Samuel
  OP
  Investor · Charleston, SC · Member since 2024 · 16 posts · 6 votes
  1y
  Quote from @Chris Seveney:
  
  Quote from @Kala Samuel:
  
  I have been presented with the opportunity to Lend to an investor on a property she owns free and clear.
  "I am looking for a short term 90 day or less loan secured by the property for rehab costs of $15,000 @ 20% flat fee interest on a property I own free and clear. My goal is to finish the work in 30 days or less and then list it and sell it. We will do a promissory note with personal guarantee and a mortgage note lien to secure the funds you the house.
  
  Purchased $190k
  Repairs $25k
  (I’ve put $10k of my own money in repairs already)
  Selling for $279k"
  what do i need to consider? Any tips?
  
  What lien position is this and what is the balance and status of any other liens.
  1st position.
  No liens. Purchased with cash.
  0 Reply

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