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How can such high interest be warranted on "good real estate" investments?

I've been in the lending business for 37 years, and in the last 10 years interest rates have traded within a realatively tight range of 5 - 7.5.  I have never, repeat, never seen a mortgage pool offer 15% during this period.  If a mortgage fund lends money to "affiliated" borrowers who buy fixers to remodel and sell, it must be explicitly disclosed, and even then an added risk disclosure would be prudent.  Were these unsofisticated investors relying on the fund managers for expertise in lending or real estate development?   If these properties were such good deals, why would an experienced developer pay over 15% interest plus points?  Surely one wouldn't invest in a loan to an inexperienced developer/flipper, right?


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To be a successful real estate investor requires being able to find good real estate investment deals and put them together. As a real estate investor you must know closely how you will exit the chattels before you buy.  Identifying the right market & finding the best property holds the key to success. In fact there is a tool through which you can research, compare & identify best places to invest. Look into http://www.smartzip.com/s/sz/info/offer for more information.

 
Posted 2009-08-14T13:45:55Z
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Currently, interest rates are lower than they have been in some time. If you are thinking of buying a home, now is certainly the time to do so. A recent market report reflects that U.S. property has become an increasingly more attractive opportunity for home buyers and investors. U.S. property values in many areas are at an all time low thus causing much upside potential. Knowing where not to buy a home is as important as are the dos and don’ts of buying a home. There is a tool which can erase all the confusion related to home buying. It's a tool which Identifies properties with the most value, establishes the right price range to pay, projects long-term cash flow and appreciation & assesses how to maximize after-tax returns.  For more information look into http://www.smartzip.com/info/score
Posted 2009-08-18T09:37:57Z
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