Posted by Dirk Roach on May 02, 1999 at 18:59:38:
all thoughts of a really cool website are now pushed right out of my head. LOL.
Dirk
Question about selling Notes (whole and partials) - Posted by Dirk Roach
Posted by Dirk Roach on April 29, 1999 at 20:29:00:
Hello Everyone,
I was wondering about selling notes and avoiding securities. Is a standard clause used saying that the investor contacted you etc.
And also what are you seasoned note players opinion on partial sales being a red flag?
Just curious.
Dirk
Re: Question about selling Notes (whole and partials) - Posted by John Behle
Posted by John Behle on April 29, 1999 at 21:54:25:
First off, I do not recommend selling notes to private investors. The risks are too high. If you are actually selling the note or a partial - do it through one of the institutional buyers. In California and many other states, there are some licensing restrictions related to selling notes.
Those restrictions generally do not apply to buyers of notes or when you are just borrowing against notes. As long as you are not soliciting capital from the public, you are usually ok as far as security laws. Avoid advertising or contacting the investors other than face to face. Stick with those you know.
Borrow against the notes. The advantages are very much in your favor to do that. There are many ways to continue to make further profits and even the windfall profit of an early payoff if you borrow instead of selling.
It’s just as easy to find someone who needs a good rate of return and borrow against the notes or equities as it is to sell them to a buyer. Selling notes is “Killing the Goose that laid the golden egg.”
I think I wrote an article by the title of “Killing the Goose” that I’ll email you - when I find it on the computer.