All Forum Posts by: Edwin Epperson

@Joseph Stern sounds good.  I'd be happy to help any clients that your working with locally.

 Happy to discuss.  I'll send you my calendar link via DM as I cannot post links here in BP.

@Justin Brittingham speaking from a fund manager and one who originates, I would say (maybe contrary to popular opinion) identify your lender and know what they require.  This will help you know what size your "sandbox" is and you will be able to freely play within that box.  

Too many times investors go and get a deal under contract, risk EMD, and then find out they don't have the requirements that a lender asks for.

@Joseph Jakubik Sr hey great to see a land investor.  Are you flipping land or are you holding it for appreciation?  I'm in the process of developing underwriting for land flipping loans I would like to roll out and start offering in 2024.  Lets connect.

@Rena Figures just to be clear you want to have 100% equity but you are looking for a loan?  Genuin question, does that mean 100% of available equity you want to own 100% or ... you want to own the asset free and clear 100% of the value is owned by you?

@Sabrina Dagostino any reason why you wouldn't start out as a PL?  Section 8 provides great cash flow and as the bank you control the asset without taking on the liability or responsibility of owning them.  And with Sec8 that may be attractive.  Happy to discuss that space (PL that is) if your interested.

@Jared Sliwinski have you identified a 40 unit that's completely vacant?  That would be a rare deal indeed.  Is it in a bad area and completely run down, condemned even?

 What type of broker?  RE or MTG?

@Ryan Castro PL and fund manager here in Tampa.  Always good to see out of states considering investing here.  Happy to talk shop and chat

@Raj G. so I have a few questions, but first to answer your question(s). General rule when it comes to this space, CONSULT AN ATTORNEY! So generally speaking, don't worry about creating an LLC if you are NOT thinking of building a PL business. However, you may need to dive into this based on the laws of the state which you are making loans in. Earned interest is seen as ordinary income whether through a business or personally. However, if your answer to my question #1 is business model then yes you will want to create an LLC. As far as insurance you will not need workman's comp, unless of course you hire employees, and run an actual business. The type of insurance you MAY think about getting is errors and commissions insurance, and key man insurance, but again this is primarily if you're running a business of making private loans. So a few questions for you below...

#1: Are you wanting to make private loans as an investment, or as a business model?
#2: Are you only lending out your money or do you want to lend out other investors' money?
#3: Where are you lending?  Do you know the laws in that state that regulate private lending, if any?  Based on the laws of that state will dictate if you need to operate your PL out of a business or if you can do it personally, and what the threshold is before you must register your PL activity as a business.
#4: Are you holding onto these loans all the way through reconveyance (when they are paid back)?  If so this is called servicing, and some states require a lic to service loans, even your own loans.
#5: Who ar your borrowers and what type of assets are you collateralizing?  Each state has different laws regarding borrower types and asset types.  
#6: Who are your borrowers, and what type of collateral are you securing with your loans? General rule of thumb is as long as you are making a loan to a business (your borrower is an LLC/ Corp), and the managers/ owners of the entity DO NOT live in the property then you probably will not need a lic. But there are states where that type of lending is still regulated and requires a lic, or requires the lender (the one with the money) work through a lic broker/ lender to be able to make your loan.

This is just scratching the surface of all the questions you should know the answer to before striking out on your own and building a PL business.  There are MANY, MANY more questions as well,  but I won't tie up the thread with those.