Need help understanding this lender

[Paul Fagot]

So I'm trying to talk and find a PML in my area for when I find a great deal I can take advantage of it instead of someone else. I found a guy on Craigslist who lives in the town next to me who lends money secured by real estate and if there's equity he'll lend it. I checked out his website and in his investor tab he says "Investors, earn 12% - 15% on well secured 1st trust deeds, 50% or Greater LTV, you pick the loan."

I understand a little bit of each one but I feel like I’d be able to understand it better if it was broke down. Was hoping someone could maybe help me and break it down for me in the best way possible.

Like if I found a property say purchase price was $175k needs $60k and ARV is $325k

How would that play out? Do any of those sound like good or normal terms?

[Kyle J.]

@Paul Fagot The part you quoted is not targeting you (a borrower). It’s targeting investors who want to invest money with him via trust deeds.

So he’s likely originating/brokering the loans (which requires him to be licensed), and charging points on top of whatever interest rates he’s paying his investors.

Ultimately, while I could explain the above terms, I’m not sure how helpful it would be because - as I mentioned - they’re written for the investor and not the borrower. His terms for the borrower would likely be a little different, so you should ask him what those are and make sure you fully understand those.