PML & JV's for Notes

[Erica Baruti]

I'm working on a deal to purchase a pool of np 2nd notes and would like to use a private money lender or a jv. This is my first time trying to raise money to fund a deal so the process is both exciting & a bit nervous. Up to this point I've been using my sdira funds to purchase npns. I need $100k to close on the deal this week, but the process isn't going as smoothly as I anticipated. I've noticed that with just about everyone I've approached, both individuals & companies, they're so unfamiliar with notes that they're simply not interested. They're intrigued, but find it too risky and...well they'd rather pass. If I were doing a fix & flip or wholesaling a deal, they'd jump all over it. 

Can anyone offer advice? Are there any companies that would lend on a note deal? I know that hard money lenders typically won't. How do you raise private money? Is there a quick nuts & bolts education/explanation that I could give them in about 2 minutes that any of you use?

[Bob Malecki]

Well on the JV's we set up an entity so that entity owns the note, its either a LLC or a trust. We board the loan with a fully licensed servicer, FCI in this case. If the entity eventually resells the note, it would not be brokering it since the entity took assignment of that note then would assign it to the buyer. This would not be brokering.

Bob