All Forum Posts by: N/A N/A

Here is a hypothetical situation -

I hold a 1st lien position note secured by commercial land. Let's say the land is worth $ 4,000,000 so LTV on note is 50%.
The note is a 5 YR Balloon, I/O due in 5 YRS the amount is for $ 2,000,000 with the note rate at 9% interest only for 5 years.

Interest payments collected monthy would be $ 15,000 with $ 900,000 collected over 60 months and $ 2,000,000 due at month 60.

What could I expect if I wanted to sell this note? Even a ballpark figure is fine. I could also structure the note with different terms and rates to appeal to a broader base of note buyers also.

Any information would be appreciated. Thanks.

Paul

I have a lender that will loan for ReHabs at these rates -

Current Rates

Commercial Loans - Investors - Non-Owner Occupied

Beacon Score
Greater than 680
up to 75% LTV
of ARV 1 - 3 Points
From 10.99% interest

Beacon Score
620-679
up to 70% LTV
of ARV 2 - 5 Points
From 11.99% interest

Beacon Score
Less than 620
Max LTV 65%
of ARV Negotiated on a Deal by Deal basis

*****

However, the property must be located within an hour or so of these metropolitan locations.

Atlanta-Tampa-Birmingham-Chicago-Charlotte-Philadelphia

*****

Up to 100% of the entire purchase price, construction cost, closing costs and fees. ***

Paul Khin
Licensed Mortgage Broker
Small Commercial Lending
[email protected]
www.josephscott.com
(239) 573-7376

Also, the lender may have the right to call the note payable immediately if they find that there has been material misrepresentation.

I have residential lenders that will loan to LLC's, Corporations, and Trusts. Depending on what state the properties are located, I may be able to help. I am licensed for residential properties in about 15 or 20 states, however I can fund Commercial deals in all 50 states.

If you have specific scenario's you may email or call me for a free consultation.

Paul Khin
Licensed Mortgage Broker
Small Commercial Lending
o: (239) 573-7376
[email protected]
www.josephscott.com

yep - you are correct. Your equity position is market value less any liens, so, market value( $ 125,000) - liens ( $ 90,000 ) = $35,000. Equity really doesn't mean that much unless you can access it either through a refinance or an equity line on the property. Some lenders require seasoning (waiting period) on a new appraisal before allowing a refinance , some have no seasoning requirements. Usually the cheapest way to access equity is via an Equity Line, however most lenders have stricter guidelines for equity lines for investment properties than for primary residences or second homes.

If any one would like to discuss specific scenario's concerning refi's or equity lines feel free to contact me via email or phone. I am a licensed mortgage lender and also an investor.

Paul Khin (239) 573-7376 cell (239) 994-0424 [email protected]

I truly am sorry for everyone that has lost money. But the blame does rest on Gene O'Neal and his company Pinnacle and everyone that was involved in the scam. You should NOT blame the SEC, WSJ, or Hays Consulting - they are trying to do the right thing, whether it is reporting the story, bringing the culprits to justice or taking control of what assets are left to return to the investors.

I did my due diligence on Pinnacle after recieving their initial investment package and after 3 minutes of research online, I found numerous discrepancies and red flags. What I found especially alarming was that the properties Pinnacle and Gene O'Neal were purchasing were just being sold back to another Pinnicle entity under Gene O'Neal's control at inflated prices. That right there is a PONZI. When I questioned the consultant, what happens if the property is not sold within the 60 days? He said it does not matter if the property sells or not, Pinnacle will still pay you your return and principal if you request it. Now I'm thinking in my head - how can that be if the property is not sold -- where the heck is my return coming from - only one place NEW INVESTORS.

http://home.nycap.rr.com/useless/ponzi/

I truly hope that the investors recover their investments and that justice is brought to Gene O'Neal and everyone that was involved.

How many of you belive this ---

The defendants consented to the asset freeze order without admitting or denying the allegations, the agency said.

Mike O'Leary, an attorney for O'Neal, said: "This matter was worked out cooperatively between us and the Securities and Exchange Commission. The complaint has been filed. We will be filing an answer ... and denying the fraud allegations.

"We are confident that when this matter ultimately goes to court Mr. O'Neal will be exonerated of any fraud allegations."

HERE is the entire article from Reuters:
WASHINGTON, Oct 11 (Reuters) -
The U.S. Securities and Exchange Commission said on Wednesday it filed fraud charges against Pinnacle Development Partners LLC and founder Gene O'Neal alleging it operated a $30 million Ponzi scheme.

[EDITED BY ADMINISTRATOR - It is a violation of copyright to copy an entire article without permission. In the future, please post a summary, up to 2 paragraphs, or a link to the article so we can avoid any possible infringement. Thank you.]

The direct link to the article is: http://today.reuters.com/news/articleinvesting.aspx?type=fundsNews2&storyID=2006-10-11T215811Z_01_N11427652_RTRIDST_0_FINANCIAL-SEC-PINNACLE-UPDATE-1.XML

it is only a valid contract with consideration. A $ 10 deposit would make it valid. Although $100 would probably makeit look a little more serious.

I hope everything turns out well for those of you that have invested with Pinnacle. I did my due diligence and decided not to invest. The question that I have for those of you that did invest is this - do you have third party evidence ( ie DeKalb county tax collector records) of any property transactions that were purchased by Pinnacle and sold to an unrelated third party. Because supposedly for the last year that the ad was running, Pinnacle's business model was to purchase these REO's with 1/2 pinnacle's money and 1/2 investors. The only example in the marketing material that was sent to me had 8 Clifton St property that was flipped back to Pinnacle entities for higher prices and was also purchased with a mortgage held by Gene O'Neal. Look at Pinnacles business model, were properties ever purchased and then sold to unrelated third parties? If so, post this information. If not, then how did Pinnacle make money?

Once again, I post the question how is Pinnacle able to make money if NONE of the properties they have purchased have been sold to an unrelated 3rd party? Anybody from Pinnacle care to answer this question?