"Currently a taxi driver, 532 score, nothing down..."

I just got off the phone with broker Toby. Toby said, "I saw your web site and thought this might fit, because you offer hard money loans with 100% CLTV. I have a deal were the seller is motivated to sell the place and carry back a big 2nd position loan."

I asked Toby to tell me about my potential borrower and the property:
"He is currently a taxi driver and has a 532 mid score. The property is a restaurant but has 2 extra lots. Property value and purchase price is $3.3 million, and the taxi driver doesn't have any down payment. Oh, and the restaurant needs some fix-up and updating done to it. But, the bikers like to eat there..."

Sound like a good deal for your local community bank? NOT!

Want to know what my response was to this hard money loan request?

"Toby, I can offer a loan on this scenario, but I would only be interested in making a 30-40% 1st position loan. The seller can carry a big 2nd. My interest rate and points would be 14.95% and 7 points at closing."

Expensive? YES.

Would you lend your own money on this deal?