Gold, silver, real estate... how about hard money lending?

Your_Pal said:
not sure what you are trying to say but only 12%? find a trustworthy guy in India and deposit your money in any Indian bank with a return of 9% interest a year fixed. 9% annual returns fixed without any tension and if you want to make it 9.25% annual then invest money up to 3 years.

Although not sure how hard is for you to find a guy and arrange things but lately lots of FII's are investing in Indian markets.
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You sir, have no idea what you're talking about.

Only 12%? 12% ROI is pretty good actually.

Also, if he considers investing in an Indian Fixed Deposit scheme (which by the way is meant specifically for Resident and Non-resident Indians) through some channel that becomes an outright violation of the Foreign Exchange Management Act.

And even if he approaches the FII route, there is no assurance on the returns and plus there is a lot of work involved considering the new RBI and SEBI regulations in place.

P.S - Indian here.
 


12% is sort of weak IMO.. Low average at best.. Over the last 2 years I've averaged 26% just in funds and the market..

You said you still get paid even if they default.. How much do you get paid?? All of it?? Some of it?? How is the 12% guaranteed or is it just a handshake and a wink?? As for first pick, no idea how he can promise that either.. If they are doing seconds then they will always be second behind the first mortgage and no amount of deal making will change that..
 
bcc423 said:
That's something to think about. But I believe we are addressing this scenario by only approving loans at 50% LTV based on actual equity.

The way I see it, if I'm lending $40k, then the borrower must already own at least $80k equity in the property. Otherwise, no loan.

In any case thanks for the tip. I'll stress this point with the guy once again, just to make sure.



He mentioned something about possibility of additional delays in foreclosure/bankruptcy if it's a primary residence. (Maybe something to do with consumer protection laws.) But the main reason is because he already works mainly with investment residential property and commercial property, so I want to make sure we use his established model as much as possible.
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A few more things you might want to consider as well:

In the thread about silver, you mentioned your concern for hyperinflation coming. Inflation does not typically serve the creditors well.

I recently heard some statistics about commercial property and the effect of more and more businesses adopting the idea of a remote workforce (telecommuting). The article delved into the subject of a shift towards leaning up of their in-office staff and allowing more staff to telecommute from home, which would eventually hurt the commercial space (supposedly helping primary residences of 4+ bedrooms stabilize as well). The fuel cost increases also being a factor here.
 
If hyperinflation hits you definitely want to be a creditor not a lender. As a creditor you get to pay back your debts with dollars that are worth a lot less than they are now. Between all the deals on property out there and the possibility of inflation in the near future, now is a great time to be buying property.
 
AuthorAji said:
You sir, have no idea what you're talking about.

Only 12%? 12% ROI is pretty good actually.

Also, if he considers investing in an Indian Fixed Deposit scheme (which by the way is meant specifically for Resident and Non-resident Indians) through some channel that becomes an outright violation of the Foreign Exchange Management Act.

And even if he approaches the FII route, there is no assurance on the returns and plus there is a lot of work involved considering the new RBI and SEBI regulations in place.

P.S - Indian here.
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pwnd
 
In the thread about silver, you mentioned your concern for hyperinflation coming. Inflation does not typically serve the creditors well.
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Yep, this complicates things. I still think it's a real possibility.

I recently heard some statistics about commercial property and the effect of more and more businesses adopting the idea of a remote workforce (telecommuting).
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We are only looking into NYC area. Hopefully, it will remain as dense as ever.
 
Incidentally, the same article mentioned NYC as one of the cities being somewhat immune to the impending lag in a commercial property slump.
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Could you clarify please?
 
bcc423 said:
Could you clarify please?
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I can only paraphrase since it's been a few days and I don't recall the source but it mentioned that cities like SF and NYC where commercial office space is in such high demand still, it would take a pretty intense slump to affect them like it might in less dense cities like St Louis, Sacramento, etc.
 
Yeah, that's pretty much how the discussion went. NYC would be one of the last places to go under.
 
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