PLP-059 Listener Spotlight: Hypothecation – A Unique Approach To Private Lending with Nomi Yah

PLP 59 | Hypothecation

  Nomi Yah is a practitioner of creative financing. She hustles to make things happen. She’s not just waiting for things to come to her, but she makes sure to go after it. After buying her first house for $90,000, she sold it in a few years for $140,000. Seeing the profit from real estate, she…

PLP-058 Foreclosure Journal: Episode 4 – A New Exit Strategy

PLP 58 | Exit Strategy

  Just when Keith thought he had it all figured out, he found a new exit strategy for the property he and his partner landed. This fourth installment of the foreclosure journal documents is about how Keith and Landon made a property more profitable than reselling it with owner finance, taking a down payment, and…

PLP-057 Using Private Money From 8,000 Miles Away with Steve and Michelle Green

PLP 57 | Private Lending

  Working remotely in the USA from anywhere in the world is the new normal. Michelle Green is a professional real estate investor, ex-property Lawyer and Realtor/Real Estate who works virtually in Texas, USA from her home in New Zealand. In 2016, with her father Steve, she founded the Koru Group which specializes in seller financing…

PLP-056 How to Lend when Markets Turn Down

If you are looking for a way to learn how to increase wealth by using time-tested methods in an ever-changing world, then you are in the right place! Welcome to the Private Lender Podcast, the only podcast whose mission is to teach people how to become private lenders and to create an economy where people just like you and I can confidently invest and build wealth with old-world pragmatism, and without banks or Wall Street.
I want to share with you 3 or 4 of the ways I help keep money protected in a market that has peaked and is trending down. I know many are probably asking what’s my opinion on the current market? Well, as I record this episode in early January, 2019 I will only say that I believed the market has cooled a bit in my area. I’m sounding any alarms. All markets ebb and flow, tides rise and fall, and sometimes there are insane bubbles and crashes – does that sound familiar? So my answer is this: I am agnostic on US real estate at the moment – neither hot nor cold – the waves are not massive, fear and doom inducing trends. But I will certainly start looking more into the national indicators as I do the 4 things I’m about to share with you now.
1 – Tighten up lending requirements
• Demand more skin in the game from your borrower
• More reserves to pay on a loan that goes long
• quality of borrower’s RE portfolio: High-end vs. slum
2 – Scrutinize the comps – utilize a downside price contingency
• Look for a tight radius on the comps map – no more than ¼ – ½ mile, do not cross any major roads or intersections
• Are DOM (Days On Market)increasing and prices decreasing? Notice a lot of price reductions?
• Age of comp: Last 30 best, 60 manageable, no more than 90 days preferred. More than that is outdated and old, like a rotary phone or my Atari 2600
3 – Lower LTV
4 – Look for longer terms with established landlords/seller financers. My not pay as much, but Steady payments, ride out the trough and get ready for the next upmarket ride, don’t have to work your money as much.

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