"Tom, this is Al with Smoke-n-Mirrors Funding..."
"Hi Tom,
Hope you had a nice holiday! How was the family? Blah, blah, blah...
Tom, I have a nice loan to submit to you -
The Property: 150 acres of prime Texas dirt. It's a great location,
recently rezoned commercial, and I understand Wal-Mart is moving in next door.
Borrower bought the property over 5 years ago and only owes $800,000 against it,
and it recently appraised for $3.7 million!
The borrower is only looking for a 45-50% LTV loan, and wants to have a 2 year interest reserve holdback out of the loan proceeds. The borrower expects to have his $20 million dollar construction loan in place to pay you off prior to the 2 year balloon date.
Tom, how quickly can you fund this slam dunk loan? The borrower is getting a little antsy..."
Tom thinking to himself: Man, this does sound like a decent loan so far. But, I have dealt with Smoke-n-Mirrors Funding before and based on previous calls I think I need a little more info about this slam dunk deal.
Tom: Al, sounds great so far! Tell me more about the borrower.
Al: We have a good borrower, but he has fallen behind on the existing mortgage with the bank. He just doesn't get along with the guy at the bank for some reason. Anyway, the bank
had him in foreclosure, so our borrower had to declare bankruptcy to hold off the auction.
This loan will get him out of the bad deal he has with the bank. How soon can you fund it?
Tom thinking to himself: Al, you piece of work you. Were you NOT going to tell me about the little issue of the borrower being in foreclosure and currently in bankruptcy?!?!?
Tom: Al, I would love to get involved with this slam dunk deal, but I think I hear my wife calling me... yep, gotta go.
Note: Every deal has some "hair" on it. Why is it that every one wants to gloss over the bad part of the loan? In 99% of the cases, it will eventually come out at some point in the processing of the loan. Why not address the "issues" up front, and see within the first 2 minutes if it will be a deal killer?
Hope you had a nice holiday! How was the family? Blah, blah, blah...
Tom, I have a nice loan to submit to you -
The Property: 150 acres of prime Texas dirt. It's a great location,
recently rezoned commercial, and I understand Wal-Mart is moving in next door.
Borrower bought the property over 5 years ago and only owes $800,000 against it,
and it recently appraised for $3.7 million!
The borrower is only looking for a 45-50% LTV loan, and wants to have a 2 year interest reserve holdback out of the loan proceeds. The borrower expects to have his $20 million dollar construction loan in place to pay you off prior to the 2 year balloon date.
Tom, how quickly can you fund this slam dunk loan? The borrower is getting a little antsy..."
Tom thinking to himself: Man, this does sound like a decent loan so far. But, I have dealt with Smoke-n-Mirrors Funding before and based on previous calls I think I need a little more info about this slam dunk deal.
Tom: Al, sounds great so far! Tell me more about the borrower.
Al: We have a good borrower, but he has fallen behind on the existing mortgage with the bank. He just doesn't get along with the guy at the bank for some reason. Anyway, the bank
had him in foreclosure, so our borrower had to declare bankruptcy to hold off the auction.
This loan will get him out of the bad deal he has with the bank. How soon can you fund it?
Tom thinking to himself: Al, you piece of work you. Were you NOT going to tell me about the little issue of the borrower being in foreclosure and currently in bankruptcy?!?!?
Tom: Al, I would love to get involved with this slam dunk deal, but I think I hear my wife calling me... yep, gotta go.
Note: Every deal has some "hair" on it. Why is it that every one wants to gloss over the bad part of the loan? In 99% of the cases, it will eventually come out at some point in the processing of the loan. Why not address the "issues" up front, and see within the first 2 minutes if it will be a deal killer?
posted by hardmoney Tom at
8:01 AM
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