Opportunity to be the bank

[Lisa Kennedy]

I have a borrower who is currently downsizing his home. He just just put it on the market for $437K in Bellingham, WA ($185,000 equity) 

He got under contract in a fixer in Eastern WA about 3 weeks ago for $50k but the seller want to move ASAP. His house was supposed to be on the market at the same time. We all know with supplies running behind it didn’t finish for extra 3 weeks.

He is looking for someone to be the bank for $50,000 allowing to close on his future home. I suggested that I attach a lien of $55,000k to the home on the market (since it’s all beautiful and fixed up).

I also stated term of the loan is 12% interest per month which $600/month. 

Unfortunately my partner just put all our eggs in a build project. I would take this deal because it sounds like a very quick turn around for my money. 

I explained that for quick money and short terms he will need to pay at least $5k for fees - but his justification is “fixer in E Wa” is his ultimate retirement haven….

Borrower has good credit, but ran out of time to do the loan.