PLP-004 Chris Funk (part 2) – Mitigating Risk and My First Commercial Loan
WHAT YOU'LL LEARN ON EPISODE 004:
How you can lose money and the ways to prevent that from happening
LTV = Loan to Value, the amount of the loan compared to the value of the property
ARV = After Repaired Value - the perceived sales price (based on recent comparable sales {comps}) for a reconditioned property
Listen and learn what Chris includes in his credibility book that he shows to prospective lenders and sellers of distressed properties.
I made my first commercial property loan to Chris on a deal he found in Texas City. Chris used my money for the acquisition of a distressed corner property (from an out of state owner) that was previously a Mexican restaurant and a convenience store. There were two small units in the back that were occupied by a barber whose rent just covered the mortgage payment, insurance and taxes (PITI). Chris refinanced the property to cash me out after 6 months and wrapped his commercial bank loan (bank approved) when he sold the property via owner financing to the end buyer. The end buyer recently defaulted on Chris' note and he foreclosed on the property, taking it back with a ton of equity: a $60,000 loan on a property that appraised for $305,000!!!
And much more. . . .