PLP-004 Chris Funk (part 2) – Mitigating Risk and My First Commercial Loan

WHAT YOU’LL LEARN ON EPISODE 004:

How you can lose money and the ways to prevent that from happening

LTV = Loan to Value, the amount of the loan compared to the value of the property

ARV = After Repaired Value – the perceived sales price (based on recent comparable sales {comps}) for a reconditioned property

Listen and learn what Chris includes in his credibility book that he shows to prospective lenders and sellers of distressed properties.

 

 

I made my first commercial property loan to Chris on a deal he found in Texas City. Chris used my money for the acquisition of a distressed corner property (from an out of state owner) that was previously a Mexican restaurant and a convenience store. There were two small units in the back that were occupied by a barber whose rent just covered the mortgage payment, insurance and taxes (PITI). Chris refinanced the property to cash me out after 6 months and wrapped his commercial bank loan (bank approved) when he sold the property via owner financing to the end buyer. The end buyer recently defaulted on Chris’ note and he foreclosed on the property, taking it back with a ton of equity: a $60,000 loan on a property that appraised for $305,000!!!

And much more. . . .

About the author, Keith Baker

My ultimate goal is to create an economy for Real Estate (and other) Investors where banks are no longer needed. An economy where every day people look to each other for leverage and support. During the day I am an insurance adjuster for the oil field, where I handle millions of dollars of other people's money (OPM), and by night I invest in Real Estate and host this podcast. I hope you have an excellent experience and find real value within this website and the Private Lender Podcast. Please leave comments or submit your questions on the Contact Page.

I wish you prosperous, safe and happy lending and investing!

Thanks for listening

-k

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