Posted by tom resner on July 25, 2008 at 08:09:24:
I agree it sounds like a scam.
I work with Bulk Reo Purchase Lenders and the reality is that they will require 20-35% down with HML interest rates.
Up until Indy Mac went down and the exposure of Fannie Mae and Freddie Mac problems we were able to offer more liberal terms. If we can go awhile without more bad news in the marketplace we should see some loosening in the capital markets.
commercial financing/trading platforms - Posted by doug
Posted by doug on July 24, 2008 at 12:55:02:
Hello,
I am trying to get a 25million dollar reo deal I have financed. While shopping around this deal I have heard about these trading platform situations that sound too good to be true. Has anyone else heard of these? Two different funding sources have brought this up to me in the last week. Basically from my limited understanding it works like this -
you put up 500k and a financial company uses this as collateral to get a lot more money like 10million, then they give you about 50-70% of the 10m after they take out fees etc and then you don’t actually owe them any money. This process takes about 30 days.
The way it was described to me was that I could take 500k and in 90days turn it into like over 100million. Sounds like a scam to me. Anyone else run into something like this?