calmloki
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Looks like we are going to do another local property loan. 4.75 acres with a house and some outbuildings to be torn down. 7 miles from Salem, nice house on one side and a middle class++ house on the other, middle class+ neighborhood. Borrowers have 770 and 727 middle credit scores and a 16% debt ratio. They are buying the property for $240k, putting up 1/2 and borrowing 1/2, planning to clear off the house of no value and build.
We'll do a 30 year amortization with a 5 year balloon, 10% interest and a guarantee from them of a minimum of 6 months interest before they refinance (were i them i'd be looking to refi ASAP). The interest will be ordinary income, the risk is trading the $120k for a piece of land, but for me it seems somewhere between a cd and the stock market - and the 10% is kinda nice. Closing through a title company, the small lending company handles the collections and loan documents.
I'm just saying - for people who are comfortable with property, this might be a retirement income opportunity to consider.
We'll do a 30 year amortization with a 5 year balloon, 10% interest and a guarantee from them of a minimum of 6 months interest before they refinance (were i them i'd be looking to refi ASAP). The interest will be ordinary income, the risk is trading the $120k for a piece of land, but for me it seems somewhere between a cd and the stock market - and the 10% is kinda nice. Closing through a title company, the small lending company handles the collections and loan documents.
I'm just saying - for people who are comfortable with property, this might be a retirement income opportunity to consider.