Posted by Baltimore BirdDog on April 19, 1999 at 17:57:40:
Creating a loan secured by a piece of real estate and selling it to another investor is tantamount to creating a security. I have heard that the Securities and Exchange Commission does have problems with creating and selling more than one security for the same piece of property without the proper licenses, and Mike needs to look into this issue with a qualified attorney. If I were going to borrow from various investors to fund a loan for one property, I’d probably bring my real estate attorney up to speed and then arrange a meeting for the both of us with an attorney versed in securities law. Unless, of course, I wanted to risk a stay in the Graybar Hotel.
Lots of luck to you Mike. I’m sure there’s plenty of money out there. Hope you run into as much as you need.