All Forum Posts by: Scott Loud

 What are you investing in with Marshall Reddick? What kind of return and risk? I'm looking for something better then Money Market and need to have my feet wet when Money Market rates fall.

Scott-Welcome to Knoxville :) The two best groups are Best Real Estate Investor Meetup (https://www.facebook.com/groups/977583229853696) and GRID Knoxville (https://www.facebook.com/groups/gridknoxville) in my opinion-there are others too! For investing-I would look at Oliver Springs-it's just north of Oak Ridge. Also Kingston/Harriman still have some great price points which are both just to the west.  I would always recommend walking a property yourself for your first deals.  No matter how fantastic we realtors are at finding you the right deal-it's a learning process for you and that walk through is where the Dream begins.  Dig in and again, Welcome.

I saw this part of the chain and I thought I would chime in. I've been a lender, banking executive, and now I own a mortgage company and real estate investment company over a 30+ year career. We actually place loans through our NMLS-licensed mortgage company for investors including SDIRA investors, so I've done thousands of these transactions in my career. When I was working in banking, I could only have a delinquency rate of 0.4%. That means I have to be right 99.6% of the time and, when a deal does go bad, we've had to already have a secondary and tertiary exit strategy in mind before making the loan. I just did a podcast and webinar for Advanta IRA about private lending from an IRA as those that lend out of their IRA and even the gurus that teach it tend to have zero formal credit background in making sound credit decisions. Lending from your IRA can be much, much safer than using it for real estate investment, but you have to know what you're doing. For instance, we pull credit on all of our borrowers and analyze the cash flow & exit strategies on every deal just as banks do it. I'll PM you links to those two Advanta presentations. it might be helpful. Good luck and let me know if you run into questions.

Scott,

Knoxville is a great location and best bang for your buck in TN.  You have Old town, Fourth & Gill, Alcoa, Oak Ridge.  All great places with tons of great people everyone seems to be super friendly.  I have heard Oakwood and Fort Sanders can be a little rough with crime but not a scare away statistic.  Stay out of Lonsdale, Washinton Pike, but Downtown has some great places as well.

There are a lot of people here on BP that meet up in Knoxville area.

@Scott Loud

I do this whole life insurance thing, and some folks call it "infinite banking." Basically, it's a way to store your cash while still having access to it for things like loans or investments. The key is finding a provider with insurance costs below 10% to maximize your benefits and lower your commissions you pay.

You start by setting up this whole life insurance policy, and you pay premiums into it. Over time, the policy builds cash value, and you can borrow against that cash value whenever you need it. It's a bit like having a savings account that grows over time, but with some tax advantages.

In my case, I use this strategy when I'm involved in syndication deals. It's super handy to have that cash readily available for investing in these opportunities without jumping through hoops or waiting for loan approvals. Happy to answer any questions or provide more insights!

you're doing private lending out of a retirement account?  no offense but that seems highly risky.

@Scott Loud

Have you considered working with a private money lender that does direct placement of whole notes with capital partners? This may reduce the time between deals as they often have more loan opportunities than capital on hand.

Also, if you haven't done so already, check out my book published by the BiggerPockets that is a comprehensive guide to finding and finding a PML safely and securely. It's called Lend to Live: Earn Hassle-free Passive Income in Real Estate with Private Money Lending.