All Forum Posts by: David Oldenburg

It is great to be here on BP. I have been watching the site for some time, and decided to upgrade to a Plus for now. I do a lot of different things in private money and private lending, but mainly just like making money :-)  I usually do deals with my own money, partner with others, crowdfund or raise capital with other means.  I am also a good resource for newbies who need help, or a second opinion on a deal or how to structure a deal.  I look forward to networking and getting to know others :-)

@Tope Hall Hi, nice to meet you!  I am in the Granite Bay area, a few miles away from you :-)  

@Greg Anderson My phone and email are in my contact area if you want to call me tomorrow. It would be great to hear what you offer.

@Greg Anderson You have this type of loan, or you are seeking this type of loan?  If you are offering this type of loan, I would be interested in more details. All of my deals are in the CA area.

@Account Closed Yes, you could just simply sell one investment to do another, but there is a reason why you may not want to do it. Let me give you an example. In June, I had 2 great opportunities to invest. One was a $300,000 low LTV bridge loan to a seasoned investor at a high rate of 20%. I did this loan with no points to me. A few days later I had a Realtor want to do an easy "off-market" flip. I would also need about $300,000... I crunched the numbers and really wanted to do the deal, as it was an easy $30,000 profit. However, at the time, almost all of my money was loaned out to others. What made the most sense is to borrower money at 10% from another investor, and put up for collateral my 1st mortgage NOTE that I had written at 20%. I was receiving $5,000 per month in payments, and agreed to pay the other investor $2,500 for loaning me the money at 10%. This gave me a "spread" of $2,500 per month and I got all of my capital back to use on the flip. This allowed me to continue making $2,500 each month and make an additional $30,000 with the same money. When the flip sells, the money is used to pay back the person who loaned me the money at 10%, and I am left again with a 20% loan. Yes, I am losing $2,500 per month on my initial investment, but the flip took just 3 months ( a loss of $7,500) to make $30,000 profit. In theory, I could do this over and over, with the same original $300,000, but it is not always "easy" and there is definite investment and market risk. You also have to have people who are willing to loan you money and have sufficient collateral (equity) in each transaction to make sense to people loaning you money.

What I do and have done is not a "ponzi" scheme! I am loaning my own money, and I am legally pledging as collateral assets that I own. I am a licensed real estate broker in CA for 25 years, have closed over 5,000 transactions, own a real estate company, own a mortgage company and have a resume in the private money world that is too lengthy to list here. If you read my post, I am talking about a very simple and basic concept. You loan money at low LTV's, so the "NOTE" has value to other investors. You then borrow against the NOTE you already own, and use it as collateral. This is done in institutional lending every day, It is perfectly legal and banks and private lenders do it thousands of times every month across the USA. If you do it right, you can make points and a spread. As I said earlier, this is easy to do, but is not RISK-FREE! You are still obligating yourself on NOTES and run market risk. If you are in a 50% LTV loan and cannot pay it back, because someone else is not paying you, the lender could foreclose and hurt your credit etc... I am also a former stock broker and hosted a very successful financial show on building wealth and making money, This type of strategy is not for "newbies" or people with no capital. If I do this kind of thing, I have money and can make payments on loans, while I am waiting to foreclose on someone else. The course that is mentioned in this thread by George Antone, is a way to do this with OPM (other people's money). I have not taken his course, and have no idea if he is teaching the exact same strategy I am explaining here :-)

I was just at the Real Estate Investors Expo in Anaheim and George Antone was one of the speakers. I also stopped by the booth and spoke extensively with the "rep" about the course and what they are teaching. I have been a FNMA, FHA, VA lender for 25 years and loan my own money, pool money etc... I have not taken their course, and really don;t need to take it. The basics of what they are teaching can be done by anyone, assuming you have access to capital, understand risk and arbitrage. I do this all the time. However, I use my own money to leverage. Example: I loan $200,000 of my own money to an investor at say 12% and 3 points at 50% LTV. (this is very common in my area). I pocket the $9,000 in points, I then borrow $300,000 at say 10% and 1 point (I can easily do this with my connections) and use my $300,000 NOTE as collateral for the new loan. This is what banks do, but they do it a little differently. In theory, as long as I have enough connections (liquidity), I can do this over and over at very low LTV's, pocket the points each time and pocket the "spread" on the loans. However....THIS IS NOT RISK FREE!!! If any of your investors stop making you payments, you have to pay your people with your own money until you can get them paid or foreclose. If you have reserve money, this can work well. I would recommend not leveraging more than a couple of times. You can get people on Loopnet pretty easily to loan against your low LTV notes as collateral.