All Forum Posts by: Perry L.

Thank you all for your response. HML, the borrower and me know each other for a few months. HML is drawing the loan docs for me. But this is the first deal between me and the borrower. HML has done a deal with him before. The borrower does not put down any penny. Please tell me if the term justify the risk: 12% for 6 months; 3 points for loan extension; exit fee upon sale is 12% of the loan amount or 12% of net profit, which ever is greater. The property is SFH in San Francisco Bay Area.

I am making a private loan to a corporation(contractor) secured by a 2nd deed of trust. It is a 6 month rehab project. What documents should I require from the borrower? Can I go after corporation's assets if the borrower is in default? In this particular transaction, 1st deed is a hard money lender covering 70% of the purchase price. I cover the balance of the purchase price plus closing cost plus 15K for construction cost held in escrow for mile stone release.