A Doctor wants my help financing a deal, I have questions
A realtor I've used frequently asked if I'd be interested in helping a doctor client of his finance a condo, (it will be his primary home) He can't get financing because of a messy divorce and the closing is next week. He would like a loan of $190,000, paying me 6% interest. If he defaults after one year the property would be turned over to me. (This would all be drawn up legally.) My question - Is this worth my time and if so, what would be a fair interest rate?
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@Nancy Bender I see it is your first post, welcome to BP
I wouldn't consider it, since it is going to be his home. There are way too many consumer protection laws that you can run afoul of. These laws can not only keep you from collecting all your money due they could conceivably put you in jail. The Dood Frank law the @Tim Herman mentioned is an example.
If I was going to lend money as a private lender I would expect 10-12%. That is want I generally pay when I borrow private money. However private money rates can be below 6% or as high as 12%+