Hi LTV 2nds - Posted by Mark (SDCA)

Posted by Carol on June 07, 2000 at 19:37:21:


Hi LTV 2nds - Posted by Mark (SDCA)

Posted by Mark (SDCA) on June 07, 2000 at 11:15:27:

I may have the opportunity to buy some hi LTV (90+) 2nds at substantial discounts. (The realtor who is setting up the deal says I can pretty much name my discount and interest rate). They all have 5 year balloons. THey are all on OO SFRs. Buyer credit is unknown right now (there is no specific deal on the table). I realize these are VERY risky. I am comfortable with that because the absolute dollar amount invested will be small. I just want the potential reward to be commensurate with the risk.
What sort of interest rate should I be looking for? 12%? 18?
What kind of a yield do I need? 25%? 50?
What due dilligence do I need to do??



Re: Hi LTV 2nds - Posted by John Moren

Posted by John Moren on June 07, 2000 at 12:44:22:

I’d suggest getting some more details and then posting it here: what is the collateral, value of the collateral, size of the first, who holds the first, down payment, size of the second. People here could give you some generic ideas based on your input so far, but if you post a typical deal you’ll get a better response IMO. I would suggest also that, if you go through with this, think HIGH yield.