Loan of the day. We recently lent to a borrower just outside Detroit $330,000, secured by a spec house in Michigan, that was worth in our opinion $2,700,000. Very odd deal, given that the borrower needed $300,000 in 24 hours in order to facilitate the closing of another building that they had. I think we talked about this in another video. He just came to us again and said, “I need a million dollars total,” which we were not actually prepared to do based on the borrower himself. So we went back and forth and basically made him another loan to not do this in second position. Which I told you I don’t like doing second position loans, but if I’m in first and I can control it I’m okay with it.
So, we’re going to make another loan, again, a couple of days deal, he needed the exact same amount of money. We’re gonna raise the interest points in this one, which are 16% interest and 6 points. We are in the process of getting this title right now. I think you may want to remember that in this particular loan, he’s almost done with the house and he has construction people working on it.
We are always concerned, as we may have talked about before, with mechanic liens on new construction properties. You want to make sure that you get the title company on board with giving you mechanics lien coverage, of which we are doing. We will be making a video just specifically on Mechanics Liens Coverage that you may want to watch.
Dave Knudson Gravity Capital here, we are going to do another follow up to the last Michigan deal. So, we have been a little neglectful on getting our Deal of the Day’s done. We just finished up another loan and it actually ended up being the exact duplica of the last Michigan home loan deal.
So the borrower recently wanted to borrow $1,000,000 on a house that we thought was worth at least $2.5 million or a little more. He came to us and said, “I need $300,000 in like, 48 hours,” which we did lend him 300k, first position quickly on his money. And then he came back and he said, “I need another 300k dollars,” which we typically do not lend in second position, but when we make another loan behind ourselves we are okay.
So we lent him another 300k in second position. So we have the first, and the second, the points in interest, it was 330K or so, 330K or so, so we have about 660K in total. These are just the approximate numbers.
So we just finished up that one, we got the transaction completed, it’s all been recorded, it was funded, the borrower got their money. And that’s what we call the deal of the day for today. Thanks.
By the way, just a follow up on that for our loan broker wannabes. The loan broker made another $3,300, Mark Weber made another 3,3000 dollars. So all in all for basically just a phone call, he made $3,300 that on the first one, $3,300 on the second one, so mark made a total of $6,600. Just for making a phone call and telling us about the loan.
So when you become a loan broker, all you’re doing is you’re bird dogging loan deals. So you’re looking for people who need money, we’ll take you through how you can do that. We don’t have the time and the energy to actually do that ourselves on all of this.
But we think we can show you how to do that too, so feel free to tune in. We’re putting the manual together that will help you with that, it’s not going to be free of charge, you take a look at it and hopefully you can bring us some loans as well, thanks.
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