Rolling Along

My funds from the closed loan #13 have been reinvested in a new hard money loan #18. This one is actually a pretty sweet deal for the borrower. The property is a 4 bed, 2.5 bath two story single family home built in 1979. The property was purchased at auction for $105,000. Our loan is for the full amount. The property is currently occupied. The exterior looks to be in fairly good shape - new paint...

Loan Closed And A Possible New Investment

Hard money loan #13 closed today. Not sure how the borrowers made out with this investment. I'm pretty sure they lost money, but don't know how much. Not that it's any of my business. It'll be interesting to see if they ask to borrow from us again. I've got no problem lending to them again - after all, they always paid on time. I'm just curious to see if their loss sours them on flipping or not. My funds are sitting with my partner waiting for the...

Bankruptcy Law Allows Home Owners To Dump Second Mortgages

The Mercury News has a story about a legal loophole people in the Bay area in California are using to wipe out the second mortgages from their home through filing for bankruptcy. It works like this: if you want to stay in your home, the law forbids wiping out your first mortgage via bankruptcy. However, if the value of your home has plummeted and you are now under water, your second mortgage now becomes unsecured debt because your house does not...

Hard Money #13 Closing After All

Well, after writing all that up, it would seem the loan is going to close soon. My partner got a call saying we would be paid off in a couple da...

HML #13 Was Due Yesterday

Yesterday was the due date for our note for hard money loan #13. The property has still not been sold and the borrowers would like a three month extension. The borrowers were first time borrowers with us. We haven't had any problems with them - they pay on time through automatic payment with their bank. It seems the problem is that they aren't too knowledgeable about the rehabbing process.The property has been on the market for 6 months. My partner...

Another Hard Money Loan Started

After a longer wait than normal, my partner found a new hard money loan to roll over the principal from HML #15 into. The new property is a 3 bed, 1 bath single family home in San Leandro, California, built in 1942. The borrower bought the property at auction for $194,000. Our loan is for $143,700. After fix up value of the property is between $231,000 and $260,000. Using the lower number gives us...