Those numbers look a little too risky to me too. The examples I have seen of Norris Group loans, admittedly a few months ago, definately had more invested by the flipper. I would hold back some of the loan until the improvements were made in case it can’t be sold and must be rented out. If the buyer can’t come in with $20k of his own money then he is not a good risk.
These fixer-uppers are generally in the Inland Empire, so it would be no fun to take back the property and finish the fix-up and rent it or sell it.
