Do not lend without underwriting first! You will see a lot of second position deals when branding yourself as a PML. Whenever you are lending in second position, you have to know what first position owed before you even know if it's a deal worth looking at. Think of it this way, if you have a cup 75% full of water. You can only fill it 25% more before it overflows. The borrower might be asking you for that 25%(or a certain amount in second position) but without knowing how full the cup is already, you could be at risk of overflowing the cup. Overflowing the Cup = UPSIDE DOWN MORTGAGE in real estate world. You DO NOT want to lend more $$ on a property than the value of that property. You always want to lend LESS than what a property is worth, not more. If there is a lender already on the property, they are first position, and you HAVE to know what they are owed before you consider putting more debt on the property. Comment below if this provides clarity! Remember do not ever rush into deals, especially if you don't know what you are looking at.

What is underwriting? The most important thing for a lender is to make sure they get all their money back. The second most important thing is to make the best return on their money. It is crucial to figure out what the property you are lending on is worth as-is in order to know the most you can lend on it and be safe. Comment here how comfortable you feel right now 1-10 on your underwriting skills. 1 being brand newbie and 10 being GENIUS level. 🚩DO NOT START LENDING UNLESS YOU FIRST UNDERSTAND HOW TO UNDERWRITE! 🚩

Does anyone handle business funding? I have a potential lead but I'm not sure what I should be looking for in terms of security.

Will there be recordings of Community Q& A? i am in CA working during the zooms. either way i will try to make the next one. Happy Monday!!