Private/HM Lenders – How Will You Mitigate Your Lending Risks Now

[Jeff S.]

I’m specifically asking all the active flippers we know what they would do if a killer deal fell in their lap right now. The universal, and frankly obvious response is, “How do I know what a killer deal is in this environment?” As a result, everyone is taking a breather until the dust settles. I think we will too for the time being.

My few discussions with some other direct lender friends, indicate they are holding off for the time being. Here, with no investors to worry about, none of us are compelled to loan our money. I’ve not spoken to any fund managers, who are always under pressure to perform for their investors.

We were lending (or more appropriately, catch falling knives) over ten years ago as prices were plummeting. It all seem to work out. With all the uncertainty over the (hopefully) near term pandemic, and the almost certain expectation of a global recession after that, I’m curious of your thoughts and your current plans to loan money.

I suppose I could ask the similar question to the flippers out there about purchasing.