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    3 Replies Latest reply on Oct 29, 2009 10:05 PM by brandtly

    Private mortgage requirements

    Thlending Newbie
      We recently became the recipient of a small fortune and we decide to offer mortgages to our community since the banks are moving very slowly in issuing loans. We would like to know what the requirements are to become a certified mortgage lender?

      We live in Florida.
        • Re: Private mortgage requirements
          JasonTees Wayfarer
          Certified in what respect? If you want to be a good samaritan, which is quite admirable, you can certainly make investments in properties and hold the notes without have to be certified.
          • Re: Private mortgage requirements
            UncleLeon Scout
            "Hard Money" is very profitable, and fills a valid need. Actually, it serves not only the borrower, and you (as the lender), but also serves other's down the line.

            Basically, here's how it works:

            An investor buys a somewhat run-down house at a very low price (perhaps 40-50% of ready-to-occupy value). He needs short term money to pay for it, and to have money to accomplish repairs. He borrows money from a "Hard Money" lender, providing the lender with the title on a home with 60-70% loan-to-value. Tyically, the lender gets 3-6 points plus 12-18% interest. However, the "Points" are the real money maker, since the loan is for a very short time (typically 2-3 months).

            When the home is repaired, and ready to sell, the investor/contractor may sell it for 85-95% of the current value. The lender makes a profit on his money and the investor/contractor makes a profit on the sale. becauese of this, a home buyer gets a good jhome for less money than with a "standard" purchase. - Everyone wins.
            • Re: Private mortgage requirements
              brandtly Newbie
              CAn I send you our business plan for a mtg loan that we can aquire from a bank out of foreclosuer and have you fund the startup costs at 12% for 3 years or less???