Posted by Jonathan Rexford on January 29, 2001 at 20:52:49:
This does have some impact on our business if you work in a certian market. Now when we do find deals we can borrow from other Private Lenders Hard Money with 15% interest with 5 points and 3% pre payment penalty. Under the terms that this guy got caught. He borrowed the money to purchase the property at 10-12% interest only for 5 year period. This is a pretty good plan if you do a lot of L/O or contract for deed for our buyers. I know I have borrowed hundreds of thousands of dollars from Private lenders some of them participate here on this site. I am at a point of my life I am looking for long term not buy fix and flip. I see your point but as you saud KEEP YOUR EYES OPEN. This guy borrowed money from people that were getting 2-5% in CD’s. That is a shame that they got taken. They have control of a lot more properties. This is only in ST. Lucie County Florida. They operated in Palm Beach, Martin and Central Florida. So who knows where the 16 million went.