Investing in Trust Deeds (Mortgage Notes) and LLPs

[SK in CV]

[quote=bearishgurl]
I guess you could have called me one of those “intermediaries.” In the early eighties, I did this “legwork” for a “respected” C, D paper-lender located in Mission Valley….[/quote]

Really? There was such a thing? Ok, maybe there was, but it was a slimy industry back then. Who knew the big boys were gonna get into it? I worked half a dozen bankruptcies in the late 80’s/early 90’s for hard money lenders, including one that I believe is still the biggest swindle in local history (dwarfs J David). Even though nobody really ended up stealing any serious money, just losing it. Lotta money to be made, on all different sides of the business. But if you don’t know what you’re doing, a whole lot of money to be lost too.

[bearishgurl]

SK in CV, the lender I dealt with was a private lender with private investor-“partners” who primarily bought 2nds at a discount and made bridge loans to people to assist them in purchasing a property before they could qualify to buy it. He actually had several repeat customers that recommended his services to others needing it.

I was an independent contractor and a runner/information gatherer/fact finder. I was not associated with the business nor did I prepare any “packages” for its investors. He did, using my information and his up-to-the-minute title-plant contacts.

[bearishgurl]

SK in CV, the lender I dealt with was a private lender with private investor-“partners” who primarily bought 2nds at a discount and made bridge loans to people to assist them in purchasing a property before they could qualify to buy it. He actually had several repeat customers that recommended his services to others needing it.

I was an independent contractor and a runner/information gatherer/fact finder. I was not associated with the business nor did I prepare any “packages” for its investors. He did, using my information and his up-to-the-minute title-plant contacts.

[bearishgurl]

SK in CV, the lender I dealt with was a private lender with private investor-“partners” who primarily bought 2nds at a discount and made bridge loans to people to assist them in purchasing a property before they could qualify to buy it. He actually had several repeat customers that recommended his services to others needing it.

I was an independent contractor and a runner/information gatherer/fact finder. I was not associated with the business nor did I prepare any “packages” for its investors. He did, using my information and his up-to-the-minute title-plant contacts.

[bearishgurl]

SK in CV, the lender I dealt with was a private lender with private investor-“partners” who primarily bought 2nds at a discount and made bridge loans to people to assist them in purchasing a property before they could qualify to buy it. He actually had several repeat customers that recommended his services to others needing it.

I was an independent contractor and a runner/information gatherer/fact finder. I was not associated with the business nor did I prepare any “packages” for its investors. He did, using my information and his up-to-the-minute title-plant contacts.

[bearishgurl]

SK in CV, the lender I dealt with was a private lender with private investor-“partners” who primarily bought 2nds at a discount and made bridge loans to people to assist them in purchasing a property before they could qualify to buy it. He actually had several repeat customers that recommended his services to others needing it.

I was an independent contractor and a runner/information gatherer/fact finder. I was not associated with the business nor did I prepare any “packages” for its investors. He did, using my information and his up-to-the-minute title-plant contacts.

[SK in CV]

[quote=bearishgurl]SK in CV, the lender I dealt with was a private lender with private investor-“partners” who primarily bought 2nds at a discount and made bridge loans to people to assist them in purchasing a property before they could qualify to buy it. He actually had several repeat customers that recommended his services to others needing it.

[/quote]

I apologize if you thought I was disparaging you and your work. It was the industry itself. The model you describe was pretty standard. Investors buying entire loans, or fractionalized interests in the loans. Sometimes properly recorded, sometimes not. Sometimes the lenders had the proper licenses to sell securities, sometimes not. The borrowers in deep trouble. Costs were rarely under 10 pts, often much higher. 2 to 4 year, interest only loans at high rates, usually 5-7% or so more than conventional rates. All sorts of bad things happened. Loans got oversold. Loans were re-upped, in a falling market with new points just added on. In-house appraisals said whatever the lender wanted them to say. By ’94 just about every one of them were either in trouble or out of business. Great business to be in, in a rising market. But since wall street got into subprime lending, it was pretty much non-existent over the last 6 years.

[SK in CV]

[quote=bearishgurl]SK in CV, the lender I dealt with was a private lender with private investor-“partners” who primarily bought 2nds at a discount and made bridge loans to people to assist them in purchasing a property before they could qualify to buy it. He actually had several repeat customers that recommended his services to others needing it.

[/quote]

I apologize if you thought I was disparaging you and your work. It was the industry itself. The model you describe was pretty standard. Investors buying entire loans, or fractionalized interests in the loans. Sometimes properly recorded, sometimes not. Sometimes the lenders had the proper licenses to sell securities, sometimes not. The borrowers in deep trouble. Costs were rarely under 10 pts, often much higher. 2 to 4 year, interest only loans at high rates, usually 5-7% or so more than conventional rates. All sorts of bad things happened. Loans got oversold. Loans were re-upped, in a falling market with new points just added on. In-house appraisals said whatever the lender wanted them to say. By ’94 just about every one of them were either in trouble or out of business. Great business to be in, in a rising market. But since wall street got into subprime lending, it was pretty much non-existent over the last 6 years.

[SK in CV]

[quote=bearishgurl]SK in CV, the lender I dealt with was a private lender with private investor-“partners” who primarily bought 2nds at a discount and made bridge loans to people to assist them in purchasing a property before they could qualify to buy it. He actually had several repeat customers that recommended his services to others needing it.

[/quote]

I apologize if you thought I was disparaging you and your work. It was the industry itself. The model you describe was pretty standard. Investors buying entire loans, or fractionalized interests in the loans. Sometimes properly recorded, sometimes not. Sometimes the lenders had the proper licenses to sell securities, sometimes not. The borrowers in deep trouble. Costs were rarely under 10 pts, often much higher. 2 to 4 year, interest only loans at high rates, usually 5-7% or so more than conventional rates. All sorts of bad things happened. Loans got oversold. Loans were re-upped, in a falling market with new points just added on. In-house appraisals said whatever the lender wanted them to say. By ’94 just about every one of them were either in trouble or out of business. Great business to be in, in a rising market. But since wall street got into subprime lending, it was pretty much non-existent over the last 6 years.

[SK in CV]

[quote=bearishgurl]SK in CV, the lender I dealt with was a private lender with private investor-“partners” who primarily bought 2nds at a discount and made bridge loans to people to assist them in purchasing a property before they could qualify to buy it. He actually had several repeat customers that recommended his services to others needing it.

[/quote]

I apologize if you thought I was disparaging you and your work. It was the industry itself. The model you describe was pretty standard. Investors buying entire loans, or fractionalized interests in the loans. Sometimes properly recorded, sometimes not. Sometimes the lenders had the proper licenses to sell securities, sometimes not. The borrowers in deep trouble. Costs were rarely under 10 pts, often much higher. 2 to 4 year, interest only loans at high rates, usually 5-7% or so more than conventional rates. All sorts of bad things happened. Loans got oversold. Loans were re-upped, in a falling market with new points just added on. In-house appraisals said whatever the lender wanted them to say. By ’94 just about every one of them were either in trouble or out of business. Great business to be in, in a rising market. But since wall street got into subprime lending, it was pretty much non-existent over the last 6 years.

[SK in CV]

[quote=bearishgurl]SK in CV, the lender I dealt with was a private lender with private investor-“partners” who primarily bought 2nds at a discount and made bridge loans to people to assist them in purchasing a property before they could qualify to buy it. He actually had several repeat customers that recommended his services to others needing it.

[/quote]

I apologize if you thought I was disparaging you and your work. It was the industry itself. The model you describe was pretty standard. Investors buying entire loans, or fractionalized interests in the loans. Sometimes properly recorded, sometimes not. Sometimes the lenders had the proper licenses to sell securities, sometimes not. The borrowers in deep trouble. Costs were rarely under 10 pts, often much higher. 2 to 4 year, interest only loans at high rates, usually 5-7% or so more than conventional rates. All sorts of bad things happened. Loans got oversold. Loans were re-upped, in a falling market with new points just added on. In-house appraisals said whatever the lender wanted them to say. By ’94 just about every one of them were either in trouble or out of business. Great business to be in, in a rising market. But since wall street got into subprime lending, it was pretty much non-existent over the last 6 years.

[Nor-LA-SD-guy]

Mine is assumable I think (would need to double check but I remember that being part of it)

At 4.78 fixed that would be a nice loan to assume when rates hit 10%

[Nor-LA-SD-guy]

Mine is assumable I think (would need to double check but I remember that being part of it)

At 4.78 fixed that would be a nice loan to assume when rates hit 10%

[Nor-LA-SD-guy]

Mine is assumable I think (would need to double check but I remember that being part of it)

At 4.78 fixed that would be a nice loan to assume when rates hit 10%

[Nor-LA-SD-guy]

Mine is assumable I think (would need to double check but I remember that being part of it)

At 4.78 fixed that would be a nice loan to assume when rates hit 10%

[Author]

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