I accidentally derailed another thread in this Forum Section so I am starting a new thread.
I like to loan money and I like to borrow money. While that may sound funny, there are financial reasons for doing both.
So what parameters do you LENDERS have when making a loan to someone, BP member or not? Are you only looking for transactional and short term loans? Are you looking for a first position loan or an unsecured loan? Do you ever make a long term loan if the position is strong? ie. 60% LTV or less?
What parameters do you BORROWERS want when seeking a loan? Would you prefer an Institutional Lender over a private lender? Do you want longer terms? Better interest rates? Non secured loans?
Here is a situation that I will be looking at later this year. I am selling a property in the $400K price range with a $200K mortgage. Doing a 1031, I can't get mortgage relief so I have to incur at least $200K in Mortgages. My goal is to buy 4 houses, $100K each, $50K down and a $50 K First Trust Deed. I am hoping to get $1200 to $1500 rent from each one. At 7% and 30 years, the payment would be only $332 so I would make at least a double payment each month. With a $700 payment, the loan pays off in 92 months. Institutional lenders would have $2,000 to $3,000 in just fees (aka stealing). So would you lenders here be interested in something like that? Or is it just not a good enough return for you?
Personally, if I could loan money to myself, I would, but the IRS says that is a no no in a 1031. So instead of loaning it to myself, I just go buy something else.
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing