Yuck! A Rotten Tomato
We don't do 'rotten tomatoes'. What makes a file rotten? One that has a very high debt against its property value (called a high loan to value ratio (LTV)) that has no supporting additional collateral to improve its security to offset your risk, often one where the borrowers show little to no ability to make payments. Clearly there will appear to be 'no end game' to get these borrowers back into conventional financing. So don't ever accept one! And with Greg Stanley watching over you - you won't. It is that simple.
A Nice Apple
A Juicy Plum
After you read our 15 steps you be able to pick an apple. It is a file that is low ratio LTV, borrowers can show ability to make payments, their financial position is improved by our help, improved cashflow and an exit stragety. Your loan will be the borrower's 'first step' on the path for the borrowers to get conventional financing again. Earns a higher return than plums.
A yummy juicy plum is the best deal possible with private funds. A plum means a great file. It will make you wonder 'Why can't they get conventional financing?' The truth is that a bump in the road can happen to almost anyone. Even good people! And they need your help as an investor. Features are very similar to an Apple but has even lower loan to value, often has extra collateral security besides just real estate, a strong ability to make payments. Very secure, short-term loan to which borrowers are expected to move into conventional financing - to pay you out - within a 1 year term.