Hard Money lending...

Moosie · Mar 27, 2008

What are decent rates to lend out coin? I'm going to do some research on payday loans, etc.......... but I just lent some $ out to a guy that has borrowed money before and paid back at 10% for 2 week payday float. Although it sounds like good money, is that enough for a Hard money lend with no Colateral

brymoore · Mar 28, 2008

260% for the year, not bad. I think Moneytree gets 520%.

IDHunters · Mar 28, 2008

Is it enough? Well, what is your loss ratio, what is your cost of funds, and what is an alternative "safe" investment. Annual return looks good, but its only "real" if you can keep the money loaned out for the entire 365 days.

If you are loaning to 1 guy at 10% and he doesn't pay the loan off it would take the profit from 10 other similar loans to get your principle back (really complex, I know).

Moosie · Mar 28, 2008

So Money tree does 20% for 2 weeks. HUmmmm..

IDH, My loss ratio is 0% right now. What is a "SAFE" investment ?

And your eright, that money is out, and will be back in 2 weeks.

As far as your ananlisis, you're right. I was told that you need 100% return on 50% of your loans if 50% default in day one... jsut to break even. YAh, you can rund different numbers all day. Bottom line, at the end of the year, you wan to have more then you started. I'm still working on that part

I make some here, loose some there, spend a little here and walla, year end, $0

Hard Money lending...

Moosie

Grand poopa

brymoore

Well-known member

IDHunters

Member

Moosie

Grand poopa

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