Quote:
Originally Posted by Steve Viegas
If you purchase real estate leins, please make sure you are in the "first position". People in second position or beyond are really at the mercy of the first position. If things go bad, it is far more likely that the first position will get paid out (possibly a partial payment) then any following positions.
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Not entirely true. Anyone with a loan in default has the option of paying overdue amounts to the other lenders. At least that's how the loan should be written up. But, you make an interesting point. Let's say I don't pay my first, but pay my 2nd. The only way I will know what's going on is when the first starts foreclosure. It could be expensive to get things right. That's why my friend only does up to 60 % LTV.
He finds them. I don't know how or that would be my business too. I'd borrow money at an equal rate just for the chance to take over those homes with only 60 % of the value owed. That's just shooting fish in a barrel.
Of course throwing people out into the street ain't too nice. In fact, my friend ain't too nice, but we did business between us well a few years ago.
Quote:
Originally Posted by flatbutt
spelling correction; Madeoff
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Pretty funny.