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The bankers code

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Bill Schultz

Sep 14 '11, 08:27 AM


Has anyone seen this course? Something about obtaining private money and re-lending it at a higher rate. I would love to hear some reviews.



Will Barnard Moderator Donor

Real Estate Investor from Santa Clarita, California

Sep 14 '11, 09:01 AM


Originally posted by bill schultz:
Has anyone seen this course? Something about obtaining private money and re-lending it at a higher rate. I would love to hear some reviews.
No clue as to the course referenced, but you better have a license to do this as it is not legal to borrow funds from others, combine them and re-loan them out at higher rates without a license and be registered with the SEC.



Medium_be_logoWill Barnard, Barnard Enterprises, Inc.
E-Mail: [email protected]
Website: http://www.barnardenterprises.com
http://www.InvestorExperts.com


Ann Bellamy Verified

Real Estate Lender from Tyngsboro, Massachusetts

Sep 14 '11, 09:04 AM
4 votes


I review as many gurus and courses as possible, and have plenty of contact with them as I was a co-founder of a local REIA. Sorting through them is a full time job. I especially try to stay on top of the ones relating to lending in real estate investing. When I heard of the Banker's Code, I was all about finding an easier path.

George Antone and Gary Boomershine were promoting the Banker's Code via signing up for a personal phone consultation with them, I was supposed to have a 1 hour session with one of them personally. I paid the small dollars for the offer and signed up, and scheduled the phone appointment. They actually have someone who's full time job it is to make and track these appointments.

Every time it was the appointed time for our phone call, I got a call from a substitute, apologizing that George and Gary were both unexpectedly unavailable, and explaining that he/she were going to speak with me instead. When I politely declined, the person couldn't even reschedule, and had to refer me back to the scheduler.

When this happened 3 times, I called the scheduler and requested a refund. I had enough evidence to satisfy me that I was paying for a sales pitch, not a consultation. I did receive my refund about 6 weeks later.

I have an associate who has been to their course and is trying to follow what they have told him. They apparently make it sound very simple and relatively hands off to start a lending company. Evidently all you have to do is find a mortgage broker who will handle all the borrower compliance issues for you and bring you deals. Then you find a loan servicing company to service these loans. Then you find an attorney/title co who can handle the closings nationally. Then you go and find your funding from people begging you to lend out their money for them. You lend it out higher than you take it in, and voila, you keep the spread. Easy peasy. Why isn't everyone doing it? (Their material is heavily West Coast slanted, and doesn't really address differences we have in the East. For example, in CA I'm told that mortgage brokers can sell fractionalized loans, and the Banker's Code uses that technique, but no lawyer I've spoken to in my location will endorse that. Must be I'm speaking to the wrong lawyers.)

There is more to it, but you get the idea. Gee, I wish I knew it was that easy when I started. Then I wouldn't have gotten so involved with due diligence, SEC compliance, lending licensing requirements, and all those little issues that are so time consuming and don't produce revenue.

I hope everyone reading this knows I have my tongue firmly planted in my cheek.

Bottom line, when someone gives me the run around 3 times for a simple phone call, I'm not going down that road with them any further.



Medium_small_logoAnn Bellamy, Buy Now, LLC
Telephone: 800-418-0081
Website: http://www.buynowhardmoney.com
Hard money lending in NH and MA, and for free networking in MA, http://www.BlackDiamondREI.com


Ann Bellamy Verified

Real Estate Lender from Tyngsboro, Massachusetts

Sep 14 '11, 09:06 AM


Originally posted by Will Barnard:
Originally posted by bill schultz:
Has anyone seen this course? Something about obtaining private money and re-lending it at a higher rate. I would love to hear some reviews.
No clue as to the course referenced, but you better have a license to do this as it is not legal to borrow funds from others, combine them and re-loan them out at higher rates without a license and be registered with the SEC.

I'm with you, Will, I was just typing my answer and saying the same thing, but in a longer less concise format.



Medium_small_logoAnn Bellamy, Buy Now, LLC
Telephone: 800-418-0081
Website: http://www.buynowhardmoney.com
Hard money lending in NH and MA, and for free networking in MA, http://www.BlackDiamondREI.com


Kevin Yeats

Real Estate Lender from Fort Pierce, Florida

Sep 14 '11, 09:33 AM
2 votes


How good are you at underwriting loans?

The 3-6-3 rule of banking may be extinct. "Pay 3% on deposits, make loans at 6% and be on the golf course at 3."

The spread that you envision is only one part of this formula. Loan losses aka defaults or late payments can make a significant dent into your profits. Foreclosing on a property also takes a lot of time and resources.

Are you sure you want to pursue this?



Jon Holdman Moderator

SFR Investor from Wheat Ridge, Colorado

Sep 14 '11, 09:43 AM


In Colorado, you not only need a mortgage broker license but also an additional license specifically for doing what's described here. I know a few people who are doing this, and I have some money in with one of them. So, this is possible. Starting from scratch know nothing about lending or real estate is not going to be easy, though.



Jon Holdman, Flying Phoenix LLC


Rob Gillespie

Real Estate Investor from Fairview Park, Ohio

Sep 14 '11, 10:12 AM


Bill,
never saw the course, but by the description that you just gave me, I would not get involved with that plan.

That is a great plan if you have deep pockets to cover payments and if you REALLY know your business and can maintain control of the property.

Finally, I am not an SEC attorney, but it does seem like their could be some MAJOR legal problems, especially if anyone looses a dime!

There are a lotta easier ways to make coin in this biz without that much risk.

Just my 2 cents! :mrgreen:



Leo M

Sep 27 '11, 06:12 AM


I attended the free session that they were doing in May called "The Wealthy Code". This is almost an introduction course to The Banker's Code and it gives you a basic understanding of passive income and other avenues. In my personal opinion, I feel that George Antone is a great teacher and has a wealth of knowledge and this course is amazing and free. They give you workbooks and really open your eyes to analyzing a good deal. I'm going to start the course soon. [REMOVED]


Edited Sep 27 2011, 06:22 by Moderator


David Doyle

General Contractor from Monrovia, California

Jun 25 '12, 08:24 PM


George and Gary are nice guys ,GOOD GUYS,,and I think there stuff is valid,,,I think their information and training is worthwhile,,,
Having said that,,theres Lots of Stuff avaialble on a Google search for Hard Money Lending or Private Mortgage Training,,,

I want to propose a question "
Would you rather pay someone 8K grand to learn something about hard money lending or would u rather spend a little bit less checking stuff out chunk by chunk on the Net,,,,???? If u got 8K and u wanna get in the fast lane then u know what to do,,,,Trust but verify,,,make sure your right and then go ahead,,,(Davy Crockett)

I invite you to draw your own conclusions,,,,,



Dion DePaoli

Note Investor from Fort Lauderdale, Florida

Jun 25 '12, 09:40 PM
1 vote


Heard of the course never took it or read any reviews. I do have mortgage banking experience, as well as lending fund to fund money. I had both private investor money and institutional money including a warehouse line of credit.

All that said, if you know nothing about writing a loan, which frankly you are asking about this to begin with, so you are starting in the wrong place. All the legal issues and license issues can be overcome if your serious, you just go get those. You will need a license to lend in every state you desire to lend in, which is different than being a mortgage broker or a mortgage broker business in many states. Lenders have bond and liquidity requirements and audit requirements which are different from state to state.

The notion is simple, you get money cheaper than you lend it out creating an arbitrage between the two and collect the spread and perhaps a point or two at origination. That is pretty simple to understand. How to measure prepayment risk and default risk along with how to underwrite are skills that you do not get over night. Also, portfolio management is not something you pick up over night. How will you exit the loans? How will you solicit for investors? The list of questions can go on for a bit.

There are plenty of folks here on BP who are affluent in loans, lending and are actually practicing lenders. Spend sometime with them and start the learning process. Perhaps start off in an entry level role as an investor to see if all the work and risk that goes with the venture is truly what you want. BP has the firepower to educate you with the folks here and that will be cheaper than paying for a course that costs thousands and apparently the right teacher never calls you.



Jerome Adams

Willingboro, New Jersey

Feb 04 '13, 12:42 PM


I'm glad I found this forum because of course I was in the process of buying into some of the things these "gurus" say not realizing how much behind the scene work is necessary. I did not even know that a license had to be obtained in order to be involved in private lending. with that being said I am still very much interested in this aspect of real estate investing and especially note investing. Hopefully I'll get more insight after searching on here



Ron Steele

Birmingham, Alabama

Feb 05 '13, 03:53 AM


Where do you find the money to lend? For example I get the concept, but if u are not using your original money how do u access the money?



Dion DePaoli

Note Investor from Fort Lauderdale, Florida

Feb 07 '13, 12:14 AM


Originally posted by Ron Steele:
Where do you find the money to lend? For example I get the concept, but if u are not using your original money how do u access the money?

Ron, what you are asking about is called raising capital. If you are raising capital with the intent to loan it out, stand in the middle of the room, look to your left, that is the regulations around raising capital and then look to your right, that is the regulations around lending money.

How to raise capital in compliance with SEC/FINRA is a whole set of discussion on their own. Who you raise money from, how much, how you solicit and how you structure the investment....all things that would fall into that concept.

Provided you gain an understanding of all of that, it becomes a function of raising the capital in either equity or debt or a combination of the two.



Ron Steele

Birmingham, Alabama

Feb 10 '13, 02:11 PM


Thanks for the info?

I understand raising capital. Could you or anyone provide any resources or examples to learn more about this.

I don't understand why someone would loan me $ at ex 6% no collateral then I loan at 10% hard money which would be ltv of 65% or lower, secured by collateral (real estate),plus points. The other points is lending on what??? my credit,sales pitch, ???

The only way I can see getting these terms are traditional financing which would highly doubtful/impossible I would think.

I thought maybe a line of credit would work(I have a small one) but I don't know if the spread would make sense. I'm not sure what I'm paying on interest, but my loans would have to have a much higher rate. Also it seems you would have to have a pretty big line of credit.

I'm looking for any answers anybody could provide, and thanks in advance for your help.



Ron Steele

Birmingham, Alabama

Feb 11 '13, 03:32 AM


Any opinions on this would be helpful before I purchase the course.

Thanks



Account Closed

Real Estate Investor from

Apr 10 '13, 09:12 PM


im not sure i understand .. why would u consider buying the course after all the opinions n mention of this course being non-compliant with the law?



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