I forgot about your subprime RSF comment. Hard money lenders lend based on the property’s value and they don’t use 25 year old appraisers who need $400 to make their next rent check to determine the value. I’ve done 10-15 over the last 3 years with great returns and a bunch of BK’s as borrowers. And they don’t do 100% LTV or anywhere near that unless they are stupid or have extremely stupid investors. Hard Money lending is all about the value of the property and has nearly nothing to do with the borrower and has no relation to a subprime lender that is using brokers they don’t even know to fish for loans.
Are RSF prices also facing downward pressure from the subprime implosion? RSF homeowners are more likely to feel the pressure because they invested $10-20mm in a hedge fund that has exposure to via CBO’s than from toxic RSF loans.
I’ll check back with you bittermen in 12 months and we’ll see where you’re at (assuming this site exists). Misery loves company and you have plenty of that on all these bubble blogs.
