Another Hard Money Investment Made

This weekend, I got another opportunity for a hard money lending opportunity from my partner in some other deals, Les. A contractor has purchased a duplex all cash for $355,000 in Livermore, California, which is a bit south of the San Fransisco Bay area. He's coming to us for a first mortgage of $285,000, giving an 80% loan to value ratio. The property was a bank REO, but it is in fairly good shape. ROI is 10% net to me. Interest only payments and the loan length is 1 year. He's personally guaranteed the loan and we can hit his excellent credit score if he is 30 days or more late with a payment.

The property is a duplex on a 7,000 square foot lot. Units are 1,050 square feet (2 bed / 2 bath) and 945 square feet (2 bed / 1 bath). There are 4 parking spaces. Conservative estimate for monthly rental income is $2,800. Borrower, who has better knowledge of the area, believes it can rent for $3,400. If the borrower does not perform and we have to foreclose, the exit plan is to keep the property and rent it out for its cashflow.

I've decided to invest in this. I'll label it Hard Money #5.

Saturday Was Cashflow Day

I received my first payment from Hard Money Loan #3 on Saturday - a nice check for a little over $400. It's nice to be receiving passive income checks again!

Multi #1 Producing Income

Yesterday, I got my first check from my apartment complex investment. It's actually not from the operations of the complex, so it's not very big and it is no reflection on the investment itself. If you recall, I invested in the property, but then the principles of the project were having difficulty raising all the funds needed for purchase. It took them 2 months, but they finally did it. Well, that two months they had my money and the money of other early investors. What they did was put our funds into a regular interest-earning bank account. Now they are returning the interest earned during those two months to the investors. My check was for a couple hundred dollars.

Next month, though, will be the three month anniversary of our purchase of the property. Since they distribute profits quarterly, we should be getting our first real return on our investment then.

Loose Ends (Updated)

Just trying to wrap up the loose ends on the sale of Rental #1. I canceled the home insurance last week and the refund check for the unused portion of the policy arrived today. The only thing left is the return of my funds from the last property managers. On July 19, they said they were waiting to make sure all the final bills have been paid. I'll give them another week and if I don't get anything from them by then, I'll give them a call.

Update: One more thing left: I am also still waiting for the mortgage company to return the monies in my escrow account.