All Forum Posts by: Lisa Eckman

@Dave DeMarinis thanks for the advice. I get what you’re saying, but how would I go about finding an attorney in Ohio to either draw up or review docs?

@Jonathan Greer I take it the home wasn’t in the San Diego area. ;). Where are you investing? What was the length of time you borrowed the money for if I can ask? Was 15% the annualized rate or ? Thanks.

@Derrick Alexis At this point I'm not really sure.  And I guess I'd have to say it really doesn't matter as long as the numbers make sense.  But I guess that's where it gets a little tricky.  If it's an area I know nothing about, it will take me a longer and more effort to determine if the numbers do make sense.  As you can tell, I'm pretty new to private lending, and I'm just learning the ropes.

@?Joseph Walsh, "Instead of just "you'll get 10% interest every month, and when I sell/refinance, I pay back your investment in whole".  Wondering about the figures here... 10% per month to me means (for example, on a loan of $1000), $100 for the MONTH.  But 10% per annum means $100 over the course of 1 year.  Can you (Joseph) or anyone else clarify this for me?  Not sure if it's just a wording thing, but I like to back it up with a specific example to be clear.  Thank you!

@Jeff S, "Are they offering you 10% or 10% APR? Big difference".  So I think the difference is the following:

100K @ 10% APR = 10K over one year

In your reply above, "10%" (without the APR), would it be correct to say that the term is NOT over the course of a year. For example, in this scenario, would that mean 10% for a 1 month term, or $10K for the 100K loan kept for 1 month only?

If that's the case, then that "10%" would always need to be followed by the length of the term to know what that really works out to.  Correct?

Or are you only referring to the "APR" portion (ie: other costs added in and averaged).

Thanks for clarifying!

Do we have an Attorney's from OH on this thread that might want to chime in about looking over/preparing the docs for the lender side of things?  Cost?  I will be getting a lender's title insurance policy.  The way I see it, my biggest concern, in terms of title, would be a tax lien, which would take priority.

Thank you ALL for your input on this.  Very helpful!

Thanks again for the input.  So, back to your original answers about having an attorney to represent ME to draft docs.  What if the investor already has a "standard" Mortgage & Mortgage Note drafted by HIS attorney.  It's very short and not complex.  You would still hire an attorney to review AND have the investor pay the cost?  I really want this to be easy for all parties, but also want to be protected in case something goes south.

@Corey Young

I think the answer is because it is easier, faster, less hoops and less stringent qualifying guidelines/requirements.  

@Don Scott, @Scott T Brady

Speaking of points, could you give me an idea of what you would expect to pay in terms points, interest rate and term?  Say for a loan of less than $50k. Vs. a loan of $100k?

@Scott T Brady thanks for the explanation.

Scott T Brady, so in your example above, if they had title insurance, and it was Title's fault for not seeing the tax liens the borrower had, then wouldn't title have to basically pay off those liens?

What if you get title insurance today, and tomorrow a tax lien is placed on the property.  I don't think title insurance would help at that point because it was after the fact.  Right?