All Forum Posts by: Ron Nawrocki

I'm looking for a ex-bank CFO, Controller, Accountant, or banking consultant to help fill in the key details from a bank's perspective on the advantages of a Performing Loan vs. REO or non-Performing Loan.

I'm working on a simple solution to the real estate & banking crises and figured this site would be a great place to find a partner on this mission.

Did you ever find that form? I don't see it in the forms

"Why would anyone flip houses when you have to pay 50% in income & Self employment taxes?"

Even if it is 50% you still keep the other half!
You should start moving some of that earned money into a true Self-Directed Roth IRA and then I can help you build that IRA as if it were on steroids.


I'm helping other investors put $15-20k away on each flip, tax free, and no tax on future withdrawals.

- Ron

Back to the original thread on licensing ...

The documentation on the new SAFE act is pretty good (rare but true). If you read the text related to "Loan Originators" (LO) it says when required (e.g. brokering) and when not needed (fewer than 5 loans/yr using own money unless handled by licensed LO).

NOTE: having a license is necessary in these cases, but NOT sufficient. You need to hang your license with a Mortgage Broker or Mortgage Banker ... or get that license too.

State laws can be stricter ... so they have a link to the state regulations.

Don't you love it ... the banks aren't lending ... and Govt. complicates life for private lenders!

Even though LO's (like me) are registered nationally, we need to have a license in each state we lend.

NOTE: request for loans should go to the separate subgroup on private lending

“There are 3 types of investors: Bulls, Bears, and Sheep†– Ron Nawrocki

“After all is said and done … a lot more will be said than done†– Unknown

“Money can’t buy health or happiness … but neither can poverty†– Ron Nawrocki

“A goal is a dream with a deadline†- Unknown

Just an update ... FHA took away the 90 day seasoning requirement on 2/1/2010 for 1 year, you can even sell to an FHA buyer.

One caution ... since you aren't adding value in a double close - make sure your re-sale price is less than 20% more than your purchase price.

And yes, funding for double closes on REO, short sale or other sources is available. We're one of those lenders.

P.S. Before you congratulate the government for temporarily doing away with the dumb 90 day seasoning rule ... recall it was the govt. who came up with this rule in the 1st place !

- Ron

We do transactional funding - and confirm you have a correct understanding.

The only catch is that the lender obviously charges you for the funding and earns a nice return in a short period of time. So you do most of the hard work finding the property and the buyer. You earn a nice wholesaling fee of several $000 - and the lender might earn a few $000 for just wiring his/her money for a few days.

Be careful of their fees, and shop around - 2% is pretty standard (albeit high) and often there are fees for administration and transaction postponement.

If you're comfortable with your profit ... you may not mind someone else making money. That's my philosophy ...

- Ron

If you want to make payments only at the end ...

You will need to work with a friend or relative that knows you and trusts you. An experienced lender (or one I've trained) would not take the interest and fees at the end.

If you default on the loan how does the lender foreclose? Depending on whether a Deed of Trust or Mortgage state, their only way to foreclose is if you miss payments or miss the deadline for repayment.

I would want to know quickly if you're having financial problems & to foreclose within 3 months of missing the 1st payment. If no payments are due ... how would I foreclose?

One more key point not mentioned - make sure your partner is not your spouse, parent, or child.

Any transactions up and down the lineage and your spouse are disallowed.

I agree the trust companies (custodians) will give you information but will neither advise nor agree to anything borderline.

We looked at living in Austin & Albuequerque ... and ended up in the foothills of the White Tanks outside Phoenix AZ.

If you consider using leverage to improve your returns on your investments in your IRA or 401k touch base with me. We developed some proprietary structures that allow you to use recourse loans and bypass UBIT.