What I think is nuts, is when a promoter says you can buy a house off the MLS for full price, borrow the closing cost money from a "gator lender", close on the kitchen table using SubTo., and hide title under a trust.  

Then they also are not in a position to pay if the borrower defaults to ensure the underlying debt stays current. 

The reason FHA does is becaues it was designed for primary residences only and wanted to make sure the program wasnt being used by borrowers to rapidly acquire real estate portfolios (which many on this site are doing). 

I’ve been analyzing different notes lately and noticed pricing varies widely depending on LTV, borrower history, and property type.Curious how other investors here set their pricing models.What factors carry the most weight for you?

• ITV (Investment-to-Value)• Seasoning• Arrears• Borrower profileI’m always looking to improve my analysis and appreciate any perspectives.

If you are referring to speed to close, it really depends more on the borrower than the lender to make sure they get all the required documents in.

Here are mistakes I often see:Not verifying borrower payment historySkipping a title checkIgnoring property conditionMiscalculating yieldWhat’s a due diligence mistake YOU made early on?

I see a lot of investors unsure about how note pricing really works.Here are the biggest variables I look at:• Payment history / seasoning• LTV and remaining equity• Property condition• Borrower performance• Clauses in the noteFor those of you buying or selling notes, what criteria do you prioritize most?

While they allowed some families to qualify for homes, they also trapped many borrowers in decades of interest with very slow equity growth.

We have no friends or family to borrow another down-payment from.