All Forum Posts by: Amy Wan

@Account Closed I think BP is about answering questions that folks generally have, and not soliciting (or at least if someone is soliciting, it belongs in the marketplace). Happy to hear about your insight and how a lender helped you solve a problem or challenge. Less happy to see postings saying "contact me to intro you to a lender." And I think I speak for several community members when I say that I'm jaded by the sheer amount of folks posing as helpful folks on forums as a method to solicit business.

@Account Closed, its awfully nice of you to spend so much time and effort marketing for the platform. I think I've seen you send roughly 15 of the same type of messages just in the past 2 days. Given that they're in the securities and lending businesses, which are highly regulated industries, it would cause a lot of trouble on their part if you weren't properly disclosing any financial relationship to the company on your part.

Diversify, and choose the properties with the lowest leverage/level of risk, not necessarily highest IRR

A number of misunderstandings in this thread. 1) Structuring something at a partnership or TIC does not mean its not a security. The SEC came out a couple decades ago and declares that TICs are a security, and much of that entire industry blew up (see Triple Net Leasing, LLC, SEC No-Action Letter, 2000 SEC No-Act. LEXIS 824 (Aug. 23, 2000). 2) Loans or "notes" does not mean its not a security (and also has added complications because then who has the first lien?). A "note" is actually one of the first terms mentioned in the SEC laws as being a security. 3) Just because its friends and family doesnt mean its not a security. Actually, unless you're doing a 506c or public offering that allows for general solicitation, by default, you can ONLY solicit from family and friends. 4) Everyone always thinks that accepting $ from family/friends means fewer issues. I disagree--it can mean more. Emotions and relationships suddenly come into play. I just raised a small round from friends and family, and you can bet they signed the whole gamut of legal documents. Because down the line, if they complain about something, all those documents protect YOU the issuer, and you can point to the paper that disclosed EVERYTHING.

Like @Jeff Greenberg said, structure does not dictate whether or not something is a security. It's all about control and who is actively managing the project. If they're not actively managing and contributing something, then they're likely passive investors.

The reason the SEC cares is because their governmental mandate is to promote capital formation and protect investors. Too many people get swindled and lose their money in "investment" opportunities, hence their regulation of financial relationships between folks.

If you want to do a syndication for the first time to "learn" I highly recommend partnering up with a mentor with a lot of experience. From what I've seen clients do, the failure rate is much lower.

One last thing--I dont know where people get this advice, but everyone always seems to be running around thinking "partnership" (whether LLP, GP/LP, etc.) is the "best" structure for these types of deals. There is no "best" structure for everyone--there is only a "best" structure for your and what your intended goals are. There are a lot of people in partnership who, quite frankly, shouldn't be, and they only find out too late when things go sideways.

@Account Closed, you seem to be promoting this specific crowdfunding platform quite heavily across BP. Which is it, and what is your relationship to them? Do you earn a fee for bringing them leads?

trying to tag @Lane Kawaoka again, since I know he's talked with jorge.

To provide a bit more context, AHP is short for American Home Preservation. Its founder is Jorge Newbery, who at one point had over 4000 doors, and then lost it all. I believe AHP was set up with more of a social mission, and as more of a social enterprise. It's mission is to to buy non-performing notes of homes with families inside them, and attempt to work out the debt.

It depends on what your lender wants, and what you're willing to give up. There are two sides to this transaction: Typically, on the equity side, you'll do a syndication or raise a small fund, so you'll want to structure that properly. On the credit side, you can negotiate with the lender an interest rate. If you're planning on doing any rehab or construction, they may ask to split it in construction draws, and they'll likely ask for a first lien on the property. The actual rate is a negotiation, and is dependent on the risk (leverage of the property, your track record, where the property is located, etc.) Dont have enough details here, you but may also try for a Fannie/Freddie loan, now or refi it in the future, depending on what your exit strategy is. Hope that helps!

Love notes :) There are a ton of resources out there (Note School, debt-based real estate crowdfunding sites, even FCI has a note buying section).

@Ian Ippolito and @Lane Kawaoka might have some feedback.