You are an investor with $150,000 looking to do a private loan. There is a deal you can participate in. There is a gentleman with a house worth $950,000 and an outstanding mortgage amount of $550,000.

A) What is the maximum LTV (loan-to-value) you should go up to? And how much is that in dollar amounts in total borrowings against his house? b) Why would you never loan up to 100% LTV? c) This gentleman is looking to borrow $100,000. However, you are worried about him defaulting on his monthly payments and you dont want to go through the hassle of chasing him down every month. What do you do? d) The terms of the loan are for 1 year at 13.5% interest, a 2.5% lenders fee, and a 2.5% brokers fee. How much money from the $100,000 loaned does he receive?