Second Position Notes with Large equity & High FICO Borrower.

[Erik Zimerman]

Greetings all. We own a portfolio of homes in the Miami area (Surfside, Miami Beach, Bay Harbour...). These are mostly new construction homes with a first position and plenty of equity. Values from $4 to $15 million each. We are interested in someone who can provide a second position loan of on some of these. We are a prime lender as far as credit worthiness, and there is plenty of equity. A lender that could go up to 80% LTV would be ideal, but even up to 65% would be useful for us in certain situations. We understand the rates might be somewhat higher for being a second position, that is ok with us.

Most lenders will just go through the motion of trying to refinance the entire position, even if they tell you otherwise at first. Are there folks out there, private money, that will provide second positions loans? Short term or long term? Thank you.

[Jay Hinrichs]

as  PML personally your first positions are simply too high to take the risk of being in Second position. I would grab anyone who will do it for you and I would expect you will pay 15 to 20% apr for those type of loans given the risk profile.. has nothing to do with you personally as a qualified borrower but for a PML if something went wrong and they are sitting behind 3 to 15k mil in senior debt most could not pay off the first to protect themselves.  that becomes the rub..