All Forum Posts by: Eran Lifshitz

 Thank you Chris. I am familiar with them, looking for additional options.

Hi,

I am hard money lender which operate in variety of states, looking to expand my business to Ohio.

Looking for attorney who has knowledge & experience with working with lenders, borrowers, notes, mortgage etc'.

Thanks,

Eran  

@Cameron Fowler

You received here a lot of inputs from Becca.

Me & my partner are out of state investor (far out of state, from Israel (-:) and we operate in the Indi market since 2016, so we have gained a lot of experience (done few fix&flips, acquired few duplex's for buy&hold, hold few notes in Indi and provided some HML for investors working there).

To add to what Becca said, one of the main challenges for OOS investor is to build the local team to support his business. Whether this is local realtor, professional and trustworthy contractor, property management company, inspector and so on.

I think this is one of the main challenges in my opinion for being OOS investor as you must have boots on the ground especially as you are far away and can't visit/see/manage the properties yourself.

Currently we focus on HML in few states, not only Indi, let me know if we can assist in any way.

Good luck!

Eran

 Hi Casey,

As the gentlemen's above mentioned, 20% out of $700K is indeed $140K, so the answers is yes.

As a hard money lender, my 2 cents for you is that if you don't understand the loan structure in 100%, not 99% but 100%, don't go into it.

BTW - As hard money lenders usually we charge less than 20%, but seems like this is a factor of maybe less experience you have.

Anyhow good luck!

Hi,

We have an upcoming hard money lending deal in Texas, and we are looking for an attorney that caters towards lenders.

Appreciate if anyone can recommend me on such.

Regards,

Eran

Hi Michael,

Welcome and good luck in your new way.

I recommend Paperstac - I think it is the best place for a newbie to start in.

Eran

I think @Marco Bario described the process very well.

If you are looking for a place to start trying to sell your note I recommend about Paperstac.

It is an online platform, with wide scale distribution, very user friendly and with clear and detailed end-to-end process, which help you not to miss any phase on the way.

Yes, of course, T&I is not being paid to you, it is being paid to escrow account which use them to pay Taxes & Insurance.

For some notes the borrower is obligated to pay escrow on monthly basis, for some not and just pay them on yearly basis, and in some the note holder is responsible to pay, it depends on loan terms.

Not sure I understand what do you mean by "recently your borrowers started to pay down their principal".

Borrowers should pay P&I (principal & Interest) month by month (not to mention T&I - Taxes & Insurance).

This is what loans are about.

BTW - What is so powerful in amortized loans is at the beginning of the loan most of the monthly payment is going to the interest and not the the principal, what cause your UPB to stay high in the first few years (depends on loan terms & interest of course) and give you another exit strategy (selling it as performing after 1-2 years of consistent payment).

This is what so good in "being the bank".

Eran

 I don't think there is "most likely scenario".

Each note has its own history, behavior and performance.

All of the scenarios you mentioned can happen and I run into all of them during the years I am investing in notes, and note status can change on daily basis (a borrower that is working, healthy or married today might change status tomorrow).

The tip I can give you is that when you are doing due diligence prior of investing, you should take worst case scenarios and check what will be your profit in such scenarios.

If you are well protected and have multiply exit strategies, you will be able to earn even in such scenarios, and of course earn much more in more optimal scenarios.

I can tell you 3 things about the note you mentioned - 

- I like it is a medium term note (13.75 years, not the 20 or 30 years note)

- The LTV is very good, so you have good protection here

- I think I have read somewhere that statistically there is a higher chance that a note that have once been non-performing will become non-performing again in the future (not sure if this is correct).

Good luck,

Eran