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.
What is the best way to find private lemders and what terms are they looking for? - Posted by Mike Oldfield
Posted by Mike Oldfield on April 18, 1999 at 01:39:08:
I am very frustrated with the s-s-s-s-l-l-l-lo-o-o-o-w-w-w speed of my local commercial bank for my no money down deals. I specialize in buy and hold multi-family and have been very successful but I want to move along more rapidly.
I have purchased property every creative way I can except using a private third party lender. I put an add in the paper this week for private investors to lend cash secured by local real estate. The paper comes out tommorrow. What are other effective ways to locate private investors?
Has anyone used local CPA or law offices to locate their wealthy clients?
Thanks to all in advance.
Mike Oldfield
P.S. I am not a newbie by any means. I have a lot of experience but I have not used this specific method yet. Thanks again! I appreciate CREONLINE
Re: What is the best way to find private lemders and what terms are they looking for? - Posted by Mark (SDCA)
Posted by Mark (SDCA) on April 19, 1999 at 10:52:17:
Same way as finding anything. Advertise, network. Talk to people; let everyone know that you are looking for investors. Place ads in the paper (that is the way the Wooley’s do it). Print up flyers, biz cards.
Mark
PS I wouldn’t worry too much about securities laws. You aren’t selling or creating securities. You are borrowing money.
Mike,
2 things. First read the money making ideas. The fourth article down has good ideas as to finding the investors that you are looking for.
Second, there is nothing wrong with putting an ad in the paper to borrow money to purchase properties. There are issues however regarding securities that I’m not very well versed in that you may want to consider before making a big push to raise money this way. The key one having something to do with raising money for a single deal from more then one investor. I think you can get into trouble doing this. You need to research it.
Since I am a Commercial and residential loan
originator for a mortgage broker, my answer may be
biased.
I think you should find a good mortgage
broker ( or email me ) and let them find you quick
lenders, they are out there.
Also, brokers usually know local hard money
private lenders.