All Forum Posts by: David D.

I have my money with uDirect, they give me 1% on my idle funds. I asked IRA services, another custodian, what they give on idle funds, they told me 0.5% FDIC insured. I don't know the details but seems some put idle funds in FDIC insured accounts and some don't. It's not at all clear to me that I won't call my custodian some day and they say "what account, you don't have an account with us"! I don't get that feeling with a brick and morter bank or even a major online brokerage. I don't lose sleep over it but it has to make you wonder a little bit.

Does it concern anybody that some of these custodians are not FDIC insured, like uDirect for example?

I use and like uDirect, Kaaren is fast, that really helps. I would also note that they give 1% on idle funds, which can add up sometimes.

So, if the purchase price is $60k and the ARV is $100k, the borrower has to come up with $12k (20% down) + closing costs + rehab costs. The lender in this case is really only coming up with 48% of ARV, is that what it is?

When a hard money lender says they lend 60% of the ARV but want to see 20% down payment, what does that mean exactly?
Does that mean they want to see the borrower come in with 20% of the purchase price as a down payment, then the borrower also has to come up with the rehab costs?

What I ended up doing is getting a “Secure†external hard drive. The hard drive has “FDE†(Full Disk Encryption), which means everything on the disk is encrypted all the time and automatically, and, the disk is password protected, meaning there is a keypad on the drive where I key-in the password every time I plug it in. So I believe my data is really secure, at least as much as humanly possible. If somebody steals my disk there is no way they can get the data, and if I do regular backups to an offline secure server like carbonite I am bullet proof.

That's what I thought and that's what I have been doing. A signer asked me that the other day and I wanted to double check with you guys.

Will: In addition to the usury exemption, a licensed broker provides compliance with Business and Professions Code 10131.1, which requires lender to be licensed if making more than 8 loans in a year. I completely understand the desire on the part of the real estate investor (borrower) for the less expensive un-brokered private money, but the trust deed investor (lender) sometimes doesn't understand (s)he is possibly in violation of usury and B&PC 10131.1. This is all in reference to CA.

J Scott: Referring to the quote, on the "BY:" line, does one actually have to sign the words "Paul Broni, its Imperal Grand Poobah", or are the words "Paul Broni" adequate?

DeuceSevenOff: When you sign, do you sign just your name or do you depend on the text below the signature line to establish your capacity as signer?