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The way to get around Usury is a waiver. Just found that out from our attorney.

So in order to get around Usury you can charge a commitment fee?
Are there any other ways that you're aware of?

Anybody know a Venture Capatilist?

I have a new company that I started about two years ago and I have hit a wall in growth. I am working with Wells Fargo to have their mortgage agents promote my idea, but I need more.

It's a real estate marketing company and I need more exposure.

Let me know.

I think the coined phrase "Milling" comes from the properties with the equity.

Do usury laws apply to Hard Money lending as well or privately lent funding? I have borrowed hard money at 2% per month for a 3 to 4 month term. Some charge an origination of 6 points and 1.5% per month which seems to fall in line. Others go higher than that. If you were to charge 10 points per month, are you saying you could only charge that borrower for 1.75 months in a one year period or 9 months at 2 points and so forth?

How much liability do you want. As an investor you take on less liability than an agent. In my state they are requiring you to get a license if your doing anything similar to a realtor. If you do more than 4 flips in a year you have to have a license. If you transfer title from Seller to Buyer and take a portion of the proceeds, you are acting as an agent. Down the road, whether you become an agent or not will depend on the strictness of the laws in your state. Go talk to your Division of Real Estate if your concerned. They'll tell you right away if your in violation. If you do go the division however, they'll know who you are. So do what Ben Franklin did. Weigh the positives and the negatives. Whichever on contains more makes your decision.

Good luck

I have an investor friend that recently told me about milling. I'm looking for some input and experience with milling. Does it work? Does it not work? What have you seen? What are the legal issues?

This is how I understand milling:

You take a home that has 100k + in equity. You take out a loan for the entire value of the property. You lend out the equity to Hard Money borrowers who are willing to pay 5 to 10 points per month. You use the cash flow to pay the mortgage payments on the home and pocket the rest less taxes.

Am I missing something? Is there another name for this?

Look forward to the discussion

clayburgett, biggerpo and noobdog1,

Thank you for your posts.

My reason for not working with Buyers is because of the time involved. I can hire a Buyers agent to do all of the running around and they'll pay me a referral fee. I have become good at analyzing properties for investment purposes and if I find a good deal I will be the first to jump on it. That would be a conflict of my fiduciary duty if I were to represent a buyer.

I don't run a normal brokerage, because I don't think that we live among ignorant people. I have adapted my marketing to fit the needs of todays sellers. I am an agent, but I don't think that for 90 hours of education that an agent has the right to require the same salary(Or More) as a doctor and lawyer. I think the spoils should go to the most creative, but I feel that most agents are in it because it's easy to make a quick buck.

Don't ask me to think like a traditional agent, because I'm not. If you want my opinion, I'll give it to you the way I see it and you are more than welcome to disagree.

I look forward to our discussions.

Thanks,
Nick

:type:
Hi,

I'm Nick, I'm a real estate broker in Salt Lake City, Utah. I've been doing real estate for 5 years and investing for two. I would have to say that I'm the type of investor that hasn't listened to the long timers, and that got me into some trouble with my own properties. I made money on my first property which was a fix for profit and the other three ate me alive. The biggest thing i've learned is to not do the work yourself. All of my numbers were correct had I completed the work in a timely manner. There is no way I have time to complete work in a timely manner.

I'm an outside of the box thinker and am not your typical realtor. I don't work with Buyers anymore. I strictly work with sellers and I'm looking at expanding my program nationwide.

It's good to be here and I look forward to learning and sharing.