Hard Money For Land or Commercial Property

Tuesday, October 17, 2006

Will you really make a loan to a bad borrower?

I am an equity based lender. Would I be comfortable making a loan to a borrower who
never pays anyone back? It all comes down to the property...

What I have to consider as a potential lender on every deal: If the borrower defaults, can I re-sell the property relatively quickly, and for how much can I sell it?

Answering this question is the "bottom line" in considering any potential loan I do.

Question: Will I make a hard money loan to bad borrowers?
Answer: Of course I will.

Question: Will I make a hard money loan on any deal?
Answer: Absolutely NOT.

1 Comments:

  • Nice site. How come you won't make residential loans?

    By Anonymous Anonymous, at 11:26 AM  

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