All Forum Posts by: Chad Brey

@Darren and Jay:

Do you guys only lend in your area?

Would they have to be in Arizona?

What paid training are you talking about?

@Peter C. No problem. As per your request earlier, I'd love to tell you about how I got into the business and how it became successful. It'd be too lengthy to type out in this chat forum, so we can always email back and forth. 

Jay: Haha... 100%LTV @3%. That's how the banks went belly up during the 2008 bubble burst. You're right though, I've "known" private lender newbies who've tried to lend money without working with a broker but "acting" as the broker and get nailed by the SEC.

They WILL learn the hard way though. 

Ever live in Los Angeles? I went to school with a Jay Hinrichs

Jay:    We do not have brokers licenses.... our brokers do. As does the real estate attorney we work with, title, escrow, servicing co., etc. To avoid being in violation of certain lending laws, we tell the broker what our criteria is, step back, and they do the negotiating with the borrower, manage the docs, etc. This way we are compliant with CA usury laws and stay on the DRE/BRE's good side. We are considering obtaining a broker license in the future, but for now we just let the brokers on our team do all the work. 

Daren:     See response to Jay above. In our case, the private money lender is the broker. We are the bank (money source), but we make the decisions, meaning we tell the broker our underwriting criteria and how we'd like the deal structured, and the broker goes to work for us, "for points". We get the interest payments from the borrower (through a licensed servicing company). The servicing company/escrow pays our OPM sources (other people's money) first, and we keep the rest (the spread). I LOVE this business because we play such a passive role. 

Colleen:   I would probably go with Jay's advice, since we don't particularly specialize in performing/non-performing note investing. 

Seiichi:    Rates ALL depend on the risk factor of the project. The rates I charge to my borrowers range anywhere from 10-15%. The loan terms are another story. I lend all over the USA though. In California, it depends on the area. LA - sometimes 12%. In Kern County - 9-12%,. 

Toni:   Whad did you have in mind?

Rotimi:   I don't know Michael Quarles. 

Nice to meet you David

Where do you guys get your investors (money sources)? Advertise? Word of mouth?