All Forum Posts by: David Putz

@TJ Addison understood. Gaining confidence is all from experience. The key right now is getting experience with a lowesr risk as possible. We have found many new investors don't know what is a good deal and/or understand what the headers of a data tape are.

@TJ Addison the easiest way to think of a land contract is to think of buying lease options agreements. If you were to buy a lease option from someone you now own the agreement + the property. Once the borrower(cfd)/tenant(lease option) completes the contract/option they take ownership of the property. So yes the title changes when a cfd is purchased.

@Don Konipol correct. This is why it is frustrating to hear so many "educators" recommending to find capital and jv.

@Dennis Lynch

You may find more on West side like mercer or Camden County than in ocean.

I am surprised how many Note investors are still bidding at a % of UPB/BPO and even Yield. I understand why some bid via yield a little more however how many investors are going to hold a note to Maturity?

Regarding Bidding based on % OF UPB/BPO - I know the math is simple, however this equation misses a lot. This removes some of the key items that separates loans from each other, (Interest Rate, Term, balloon etc). We showed a video on interest rate of the note and the remaining term. What are other's thoughts /questions regarding this.

@Jamie Bateman well put! Yes exactly.

@Chris Seveney I would agree however we personally know a few investors who already have been fined and had to change the name of their entity due to this.

In addition, most investors are following recommendations of their guru and doing 50/50 split. They don't know anything about Howey test.

@Bob Malecki yes this is true and most end up fine. However we hear more and more how "Teachers" are encouraging beginner's to raise money through this practice. We are going to have a call with SEC Attorney to talk about this soon.

@Mariia Makashina we currently have 6 2nds for sale out of our 90+ Asset offering. 

We have heard from a lot of newer investors that they are looking for Joint Venture partners who have capital to invest.  What we are surprised is that this is being taught in education as something investors with little capital should do.  When an investor Joint Ventures with with another investor for the means of raising Capital, they need to be careful.  We often refer to the "Howey Test" as a rule of though.  

We are going to speaking to an SEC attorney to get some additional details to be order to determine exactly when Joint Ventures are illegal and legal.  Curious what other thoughts are on this.