All Forum Posts by: Sherri D.

Hello,

I am in the middle of a close for a 6-unit apartment complex and one of my investor's fell through. I have 30 days to close but I need $30,500 by January 12th. I am purchasing the complex at a cap rate of 18.8% with plans to rehab and raise the rent 37% thereby increasing the value 57%. I have 2 investors committed, and need a third to provide the above amount for 30 days at 10% to be paid back $33,550 at close which is set to happen on or before February 8th. I cannot offer any collateral for the 30 days, but I do have an approval letter to ensure the funding is there to complete the close. The 30 days are needed for my investor to complete their underwriting process. The $30,500 will be used as a 10% escrow down payment for this investor. If interested please contact me ASAP at [email protected]. I also have detailed profit & loss and cash flow statements available as well. I would  be happy to answer any questions or concerns you may have. Thank you, Sherri Duncanson

Hello, I have a signed Buy/Sell agreement with a close date of 1/8/16 for a 6-unit apartment complex in Southwest Michigan. The area cap rate is 10% and I am buying this property at 18.8%. I plan to rehab and increase the rent 37% to current market rates which should subsequently increase the value by 57%. I have 2 investors committed to the project, and am seeking a third to invest $30,500 for one year 12% APR with no prepayment penalty. I have a detailed business plan complete with profit & loss and cash flow statements available upon request. Please respond ASAP interested! Thank you! Sherri Duncanson

Yep, he was a scammer, and he has played the game for a while too. Even when I caught him in the lie he refused to own up to it. Right now I'm telling him I want my money back. Don't think I'll get it back because I don't know who the guy's true identity. Oh well, live and learn. Can't beat myself up about it and wallow in self pity. I learn and move on.

Do you use private funding? What has been your experience with it?

Unless it's coming from overseas. Rules are different in other countries. I agree that makes no sense here, but investments are not insured by FDIC, at least not at the US bank he's using. But even if that is true, I agree that a bank here would not require any insurance.

Well, he didn't start out telling me he's a man of his word, this was after several emails of me questioning his integrity. I also brought up the fact that I know banks will let you do whatever you want with your own money as long as you're a signer on the account. He, according to him, has loaned out over $500 million dollars. I started doing more research on PPI and found that its mainly been the banks pushing for it, not the private lenders, but that this is usually an issue in the UK not the US. Given his wealth I wonder if the money is coming from overseas to a US bank and then to me. I told him my concerns, we'll see what he says.

Thanks, he says it's the bank requiring the insurance, not him and after doing a little research I saw a story about banks taking advantage selling this policy. So now I'm wondering if it's the bank that's the problem and not my investor.

I am in the same boat, can I ask what you decided to do and what the outcome was? The investor I found claims to also be a private investor. I looked him up on LinkedIn and he appears to have a credible account and has given me assurance after assurance over email that he is a reputable person, a man of his word. He said that it was his bank requiring the PPI insurance which might make sense since FDIC doesn't insure investments. I want to believe him because I really need the money for my investment and am up against a serious time crunch, but am skeptical because he didn't tell me about it upfront. It was an "oh, by the way, we tried to transfer the money but the bank requires this and it costs $3,560, but after this I promise to transfer the money." Not sure what to think.

Have any of you that has borrowed money from a private investor ever heard of them requiring you to pay for a PPI insurance plan because of money laundering statues? Or in general?

Have any of you that has borrowed money from a private investor ever heard of them requiring you to pay for a PPI insurance plan because of money laundering statues? Or in general?