100% Financing Opportunity

[Logan Hassinger]

I have a current project lined up that I'm looking to use  CraigBrokerage.com for. It will be an unsecured loan for the full purchase price of 125k. They first verify income then proceed with funding approval. Once approval is granted and you are notified, a $750 attorney fee is due. The funds are leases to me with 48 hours and an additional 1-3% is taken off the top. The loan terms are at 3% for 12 years. My plan is to hold for 12 months then refi the hard money out and worst case sell the property. 

Has anyone heard of this company based out of Florida, or seen terms like this?

Is the attorney fee reasonable or even warranted? What are everyone's thoughts?

Also the deal looks like this:

125k loan, rents $1700, Variable exp 28% of rents, taxes 142/month, Insurance 75/month and debt service of 1035/month.  Property management makes up 8% which will be done by myself. 

[Ben Rutkevitz]

Hi @Logan,

My first question is if the rate is 3% then why would you look to refi this loan out? You will not get a cheaper rate elsewhere.

I would be very cautious because something doesn't make sense here. I have been lending in the real estate arena for over 8 years and have never heard of these kinds of terms. Unsecured, 3% and 100% financing don't normally go together. 

Now there might be something I am missing here. That is why I asked you the earlier question about which one of their programs are you applying for. 

I would be very wary about giving these guys any money before doing some serious due diligence and seeing the approval. If you would like me to look at the term sheet, I would be happy to give my two cents.

Your reasoning as to why this deal is so appealing is totally correct, but from a lender's perspective it doesn't make sense and that is when I get skeptical.