All Forum Posts by: Edwin E.

@Joel Owens so can someone go through a HML for a joint venture or must that be set up between a private money source and the borrower through a RE lawyer? My question is because a HML has all the resources to protect the private money source, ie; they have lawyer connections for foreclosure, a network for evaluating property, a servicing company ect... if a private money source wants to be able to use all the HML sources can the PM Investor/ TD investor choose to have the HML originate the loan as a JV? Or are HML required to only originate straight loans?

Jon Holdman, or anyone for that matter, I have a question for you (all). I've been reading on BP concerning HML interest rates in concern with usury loans. I understand that each state has its limit of what is considered an unscrupulous loan. In FL, where I am at, the rate is no more than 18% annualized. I am not an accountant so I am not extremely clear on how the rate can be broken up but from what I understand the total points and annualized rate cannot exceed 18%. Now when I had first begun in RE I had met some rehabbers that had a deal worked out with, what I assume now to be Private money. Where the Private source would fund the acquisition + rehab, or just one of the other, with an interest against the equity when sold, like 50% of the profits for example. Obviously that would break the predatory lending rule of an annualized 18%.

Am I missing something or is this State resolved? Are these type of loans only allowed to be established via Private money (the percentage of profits) and not HML? Would the combination of the two break the law? A lot of questions, and I trust you will give a full explanation, (I've been reading your post so I know that will be the case :) thank you very much sir and God Bless

WOW, that sounds almost like a modified Solo 401K

@Evan Kraus I am VERY interested in how you are doing PMI here in FL. I live up near Pensacola, and I have been positioning myself to become a source of private funds. I would greatly like to hear from you and be able to contact you. I'll PM you, if you'll give me the go ahead on the forum. Best of luck to you brother and maybe we can grab a beer sometime in the future

@Bill Gulley thanks gents for your quick responses. I think I have to completely and whole heartedly agree with Bryan, plus I am a HUGE fan of the Rams-mister. Term life is something I distinctly remember him talking about so I will definitely look into my options there and just re-invest that money I would pay for whole life back into RE. Thanks a lot gents.

@Liam Goble wow brother, that sucks! Im interested to hear how you settled that. Did you pay him upfront? If not then did you pay him for the "work" he did perform? Isn't there a "Scope of work" agreement that you can have your contractors sign before they begin work, to have the law on your side should an event like that happen? One more question from this barrage, were you physically there to oversee the work or was this a distance deal?

To all BP members,

Just wanted to know what experiences you have had regarding Life Insurance options, and what you are using concerning this "investment" method. I am in the military (notice photo:) and was asking some questions concerning our SGLI (Servicemembers Group Life Insurance) and realized that when I get out (will not be retiring) that all the money I have put into that life insurance vanishes, upon my exit.... Talk about depressing. The kicker... the military REQUIRES that you carry a minimum of 250k through this policy, they also offer up to 400k coverage for a total of +$26. per month. I choose this option almost 10+ years ago. SO based on NO interest, I am still missing out on over $3200 that if I had a civilian policy I could have had (+ interest for the past 10+ years) and possible be able to re-invest that portfolio into RE.

SO my question is what are some of your, BP community, choices when connected to Life Insurance, and what are you paying per month, if that's something you choose to disclose. Also I have heard that savvey investors are able to use their L.I. policy to help fund RE deals, is this true? Seeing as I have 1 1/2 years left this is a concern and an issue I am starting to look into.

@Jimmy Constantopoulos welcome to BP Jimmy. You will find a WEALTH of information here on BP. I wish you the best and if you are ever down in FL near the Panama to Pensacola area look me up, well get together and have a beer.

@Jacob Coates yes I am currently, in the Stan. Keep pushing ahead brother, never stop learning. Be willing to listen and HEED advice (the later is more difficult than most believe) I plan on coming out to San Jose CA this June, not sure where you are stationed state side, weather E or W coast. If we happen to be in CA or if your ever near FL give me a shout we'll link up and share a beer.

@Michael S. & @David Jayne I will absolutely post my findings. This is one of those things that my first CO, who recommended I start investing in the TSP, did yet was not very knowledgeable about. I have spoken with many a military men in my time, and even in my job where there is a higher acceptance and tolerance for risk, when it comes to financial matters the "Don't rock the Boat" and "Scared of Change" mentality hold strong sway over most. This is ONE of ... to many to list reasons I am exiting the military. I'll stay in touch