Financial Samurai - Forums

Real Estate Investing => Real Estate Crowdfunding => Topic started by: rtysmith on September 20, 2018, 05:36:26 AM

Title: When a RE loan goes bad...
Post by: rtysmith on September 20, 2018, 05:36:26 AM
I have a sizable portfolio with LendingHome (LH), and with so many investments, even though I only invest in A - C, they still occasionally go bad.
The reason I love Hard Money type lending is the asset behind the loan, in this example, I invested $2,500 in an 8.55% loan. In 12 months, it made 6 payments and missed 6 payments, the last payment being from the foreclosure sale. see: https://www.dropbox.com/s/cp5hkqa4gnp8e2h/Capto_Capture%202018-09-20_08-13-53_AM.png?dl=0

On the $2500 invested, I lost $0.71 in principal and made 307.90 in interest, making my effective APR ~10 (which seems crazy that a loan that fails to perform provides better then one that finished, so if I'm off in my thinking here please let me know).




Title: Re: When a RE loan goes bad...
Post by: Orphan on September 20, 2018, 07:13:57 AM
Curious as to what is the longest term they offer for financing. As when you invest in them what do they offer a buyer ?