Hard Money Lending February 7, 2008
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Is a disaster. You wouldn’t believe the stories I’ve heard lately from hard money lenders. Defaults, foreclosures, losses up the wazoo.
Stay away, stay far away, from doing hard money lending or buying the paper right now.
Mr. Mencarow,
I really wish you’d advised to tighten up their lending criteria (i.e. geographical areas, ARVs, borrower qualifications) rather than stop lending completely.
Some of us real estate wholesalers out there who depend on hard money and give good returns actually involve our hard money lenders’ criteria in our continually evolving market strategies.
My favorite hard money lender has suffered through a bunch of bad loans recently but he wouldn’t dream of cutting off right now…there’s simply still too much money to be made.
Thanks.
Ps. I’ve enjoyed your journals and your emails for years.