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


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

Keith Baker is the host of the Private Lender Podcast and he wants to make sure you have an excellent experience with this website and the podcast. Please leave comments or submit submit your questions on the Contact page.

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