All Forum Posts by: Ethan Demir

You are right, Jeff. It is a business purpose loan. Thank you for the useful information!

It was the agent's advice. No, it is not for owner occupants only.
I think it was this specific bank's take on individuals over LLCs. I followed the advice and did not really dig deep into it.
This is the email I received from the escrow;

"Because loan fees are being paid through escrow, we need a Financing form for each loan.
Maximum interest rate is 10%, unless the Broker negotiating this loan will be paid and give instructions authorizing his DRE License number be on the Notes"

It is going to be under my name. I had to go that way cause we weren't be able to get the same deal if I got in with my LLC. No, it won't make a difference as far as the 10% limit goes.
Do you mean paying 2% of the interest outside of the escrow and the 1.5 points upfront as well? Yes, I would. But I believe I would be violating the law.

I have an SFR property under contract and it is a short sale. My private money person and I agreed on the terms; 12% interest, 1.5 points. Due to the usury law, the escrow won't proceed since the interest rate is above 10% and I've told that I should have a broker involved once I exceed the 10% limit. Questions;
- Does it have to be a RE broker with NMLS license?
- Is there a legal way around this? (not using a broker and using the escrow just to accommodate our transaction)
- What are the paper work / documents needed in this type of transaction?

If someone could tell me how this process works, it'd be greatly appreciated. I am in Long Beach, CA and open to work with a broker who is willing to offer his/her services.

Thank you!

Ethan