All Forum Posts by: Edwin Epperson

@Levi Collins what is your purpose for the property?  

Will you live in it?

Will you purchase it in your personal name?

Are you looking for a loan longer than 12 months?

If you answered NO to all of these I may be able to help.  Please reach out if this is an investment property, and you plan on purchasing to flip or refinance within 12 months.

As you stated I cannot speak to her reasons for selling at a deep discount, but one of the reasons a PL may not pursue going after a foreclosed property is the time commitment.  Freedom of time is a real thing.  And once you experience it its one of the best things in the world.

I have several short-term IO notes I am willing to sell.  They are all performing and are with experienced real estate investors.  I lend my own capital plus a few close family and friends' capital.  I market/ process/ underwrite and service all my own loans, so these are not 2nd hand notes.  I have primarily 1st pos loans and every now and then I have a 2nd position loan (only when I also control the 1st position loan).  If anyone has interest I'm happy to discuss my process and the way I structure them.  I do require to maintain servicing of the note due to the relationship I have made with the investors.

@John S Lewis, it's good you're asking questions.  If they are holding themselves out to be a "lender" and they are in the business of making loans, then you need to check with NJ laws to determine if a license is required in the state of NJ.  There are several states that require a license to originate (make or create a loan) and there are many others which do not.  If NJ does require a license but they are stating they can make loans in the following states; Arizona, California, Nevada, North Dakota, South Dakota, Vermont then you should still request their NMLS #.  Why? Because if they are advertising to be able to make loans in those states and don't have a lic. then they are willing to break the law and you should not be OK with working with a lender who is OK with this.

Second thing you can do is search the state where they are incorporated to see if they actually have a business registered in the state.  Also get someone on the phone.  Speaking with someone will help you sort through the yellow and red flags.  Best wishes and if anything you could always use a lender from here on BP.

@Jeff Joachim, I have been PL since 2014.  I made my first loan while deployed with the US Army, on the side of a mountain in Afghanistan.  This investment style is not geographically restricted, and once you build a solid base of repeat borrowers, you don't have to spend much time doing anything else but underwriting possible deals.  You don't deal with the headache of the three "T"s (Toilets, Termites, Tenants) as well you legally take the most protected position in all of real estate investing.  Your at the base of the capital stack (depending on which position you lend on) and you are able to shift the risks, and the liability to the borrower.  Plus if the borrower defaults you get the property hopefully at a pretty nice discount. Happy to share my experience if this is something you serious about.

Another question is if you want to be an "Active" or "Passive" private lender.  Yes there are differences and one is much more of a job (marketing/ processing/ underwriting/ servicing) while the other is much more passive (truly the purest form of "mailbox" money there is).  I've been on both sides and I have helped investors expand into both sides depending on their goals.

@Amanda Bruce, I agree with @Aaron Byrne completely.  I've been PL for 8+ years and I can tell you most new investors get themselves in way over their head on big projects.  Even experienced investors can get in way over their heads.  I would advise you to find another RE Investor to partner up with, tell them they can use you capital for the downpayment in return for a portion of the profit and have the ability to work side by side with them to gain the knowledge and understanding of how to accurately estimate property repair and manage the construction crew/ contractors.  Best wishes and much success in all you do.

@Elizabeth Conklin,

Investing remotely can be a hurdle for many investors, but once overcome it can really liberate your time freedom.  One question I always pose to any investor, especially if they have capital to invest and are sitting on it, is have you considered becoming the bank?  Meaning, why not become the lender.  The professionals you deal with are always licensed, and you get to play on the banker's side of the real estate game, which is the ultimate control.  I teach investors how to do this all the time, and have been PL myself since 2014.  Happy to have a chat about that if you are curious.

Should you decide you want to be on the borrowing side you, I'm happy to give you a rundown of what I at least look for when it comes to lending to real estate investors. As @Kristina Kuba so amply stated having a team in place is CRITICAL, and this is what I look for primarily, whether the RE Investor is local or overseas.  happy to be a sounding board to field questions and ideas.  Best wishes and much success.

@Kanstas Sell, Have you ever considered becoming the bank and lending your money out?  Your investment is still secured to the underlying real estate (actually your more secured lending than you are borrowing) as well you get to shift the risks and liability to someone else (ie the borrower) while still collecting passive income.  Just a thought, and I teach investors how to do this all the time, been doing it since 2014.

@John M.

If you are looking for an 80% DSCR lender, I'm happy to have a conversation with you. As a meter of transparency I do not lend my personal money on 30yr loans, only on 6-month interest-only loans, however I do broker out fixed rate 30yr loans and they are a DSCR product. We can jump on. acall real quick to discover what you needing and how I can be of any help.

@Ricardo Hidalgo happy to have a conversation with you.  I just completed a 1031 exchange "emergency loan" to help a RE Investor purchase a property that may have fallen out due to delays on the original sell.  Not sure you situation but I'm a private lender and may have flexibility in areas that a large financial institution does not.