Getting back into lending

[Jorge Farinas]

I'm getting back into lending and I've had a recent offer for a loan as a second lien position. From what I remember, you want to be in a first lien position. I prefer that to be the situation as I'm just getting back into things. Any advice is appreciated. 

[Beth Johnson]

I do 2nds all the time but it's not for everyone and there's a ton of risk to navigate. But personally in my state of WA, I can lend in 2nd position on a rental at very low CLTV and put a 1st on a new acquisition at a low LTV and I would take that loan all day, every day over a 1st position on an acquisition at 85% LTC. Just my two cents, though. If you want to brush up on PML, I suggest you check out my book Lend to Live: Earn Hassle-free, Passive Income in Real Estate with Private Money Lending available on the BiggerPockets book store. It's super comprehensive and I've been told by experienced PMLs that they've still learned a thing or two, as well! Feel free to reach out to me if you want to discuss 2nds and if it's something you'd want to explore. I never do it behind hard money and I always keep my terms short and my LTV's low. But depends on the state your lending in, too.