Quote from: scarsbergholden on November 29, 2014, 08:22:55 PM

Quote from: Vod on November 29, 2014, 09:15:29 AM

Quote from: CryptoREI on March 21, 2014, 05:23:57 PM

What is it I am offering, I am looking for a loan of $56,000 total to be paid back $62,720 in six months or less. If the time is longer then 6 months a extension for up to 6 more months with a fee of 5,000 dollars added. The loan will be placed in first lien position against the property. For those who are not familiar with liens this means you get paid first, then the leftover is paid as profit to myself.

So the lender will only get his/her money back when you sell the house?

If you have the 1st lien on a property then you can foreclose on the property in the event that the terms of the lien are breached (most commonly that the loan is delinquent). It is however very expensive to foreclose on a house (generally it will cost ~$15,000) and is almost always a very time consuming process. Not only this but it is very difficult to document that a bitcoin loan was actually funded which could be a potential defense the OP could raise when a lender tries to foreclose on him

Wow I kinda laid to rest bitcoin interest in such deals,

Not a scam at all, your money is protected. I will explain, if you have questions please ask I love to talk real estate

.

That is correct the lender will get the money back + interest. If that is how the deal is structured.
The second choice is whats called equity partners, this is when the lender and the flipper splits the profit 50/50 this is usually how it works for the first time. It is a way you prove to your money you can do the deal and make them money.
Now in response to the foreclosure, the simplest and easiest way to make a 0 cost foreclosure is to purchase the property under a LLC. The private money lender holds 51% of LLC so if the borrower defaults he can sell the property at any time. This cost 0 dollars and can be done in a matter of days.

BTW on the property listed above the person who purchased it made 26k off it after all costs.