All Forum Posts by: Patrick McGowen

I know this is an old thread, but I had the same question.  There was a good piece of advice earlier in the thread to call your state banking commission.  I did so here is what they said.  In Montana, you did not need a license so long as:

You can originate up to five personal loans a year.  It told them I was filing a trust indenture for a house flip and they said it was fine.  I did not ask about owner occupied.  

You cannot advertise that you are lending 

You cannot violate usury laws.  In my case I had an attorney draft promissory note and he made sure of this.  MT is tough since you can't go over 15%, which can include points/fees.  i.e., you charge 12% and one point, and the loan pays off in 3 months. that is actually 16% apr and illegal. 

Hey Bozeman Montana investors.  Reminder that our local meet up is this Monday Sept 9 at 6pm.  Hope to see you there.  

@matt 

@Matt Connerundefined  Welcome to BP.   Just fyi we have a local investor meet up this Monday Sept 10.  I will PM you with details.  Hope to see you there.  Best

Hey Bozeman gang, we are meeting at Mike and Brenda's next Monday night.  PM me for details.  @Jon McElyea and @Gage Halverson would love to have you join us.  

Just a reminder for Bozeman area investors we are meeting at Mike and Brenda's next Monday evening for pot luck.  PM me for details.

Pat

@Brian Klingbail We have a local meet up Bozeman Investor Club, consider joining us.  

I PM ed you with my contact info.  I know a couple people active in Butte and might be able to put you in touch with someone.  

@Robert Kough, I have a friend that does exactly this: buy plex, live in a couple years, after some fix up and market appreciation, refi with conventional, freeing up VA for next purchase. Or something like that. I will PM you with his contact info.

I think the main challenge is having a backup HML that is willing to get far enough through process (due diligence, negotiate promissory contract etc.), only to be a backup and not get paid fees. If you are not up front and keep having a HML do the work to be ready to lend only to tell them no thanks, I had someone else in front of you... I suspect you might burn some bridges. Always good to have a backup that can move through the process fast enough if someone backs out and just be up front with them so they manage their time and effort. My two cents.

@Logan Aardrup, I grew up in Lolo (kind of bedroom community south of Missoula), and still have family in Bitterroot valley (further south).  I have done some investing in Missoula surrounding area, but not in Missoula.  Although I live in Bozeman, I would agree with @Anthony Wienke that it is an equity market and cashflow is challenging (i.e., overpriced)  I would argue that Whitefish / Kalispell is similarly to Bozeman in that it is more of an equity market, but you don't have to go far to outskirts to find better prices.  Butte can be great cashflow, but be careful as this market has slower growth (arguably no growth) than many other cities in MT so vacancy and lack of appreciation are concerns.  Missoula, Helena, Billings, seem to me to be more balanced (less cashflow than Butte, but not highly priced as Kalispell or Bozeman).  Billings is unique as it is largest city, it also gets some impact from ND oil boom (then bust, now starting to boom again).  Then you have rural MT, lots of small towns.  Great deals to be had in small town MT, but vacancy can be challenging, also limited service providers in those areas (property managers, handmen, etc.).  That is my quick take.  Hope the best for you as you transition to Missoula and work toward more passive investment income.  Best.