As security instruments for real estate, does your state use: a) mortgages, b) trust deeds, or c) some form of contracts for deed?
What is the usury ceiling on a real estate-secured transaction in your state?
Define "the right of redemption." What is the period in your state?
What are the steps in the foreclosure process in your state? How long does it usually take? About how much would it cost to foreclose on a $30,000 note?
I. What's the loan-to-value ratio on a $125,000 property with a first lien of $75,000?
II. What's the LTV on a $240,000 property with a $130,000 first and a $72,000 second?
III. What's the investment-to-value ratio on the above if you were to buy the second for $51,500?
What are generally accepted safe ranges for ITVs?
Everything else being equal, which is more valuable:
I. A $10,000 note at 11% fully amortized over 5 years;
II. A $10,000 note at 14% paid interest-only with a balloon in 6 years?
Everything else being equal, which is the better note:
I. A first lien on a plush apartment building with lots of equity;
II. A first lien on an average owner-occupied house with adequate equity?
Everything else being equal, which is the better note:
I. A second lien of $10,000 on a $50,000 house (the first lien is $30,000), giving you $10,000 equity or 80% LTV;
II. A second lien of $10,000 on a $500,000 house (the first lien is $300,000), giving you $190,000 equity or 62% LTV.
Wednesday, August 13, 2008
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