All Forum Posts by: Franklin M.

Does anyone have experience with Loans By Chris, crisloan.com
in the Washington/Baltimore/Northern Virginia area?

Thanks

Thanks, Shawn
Their term sheet had said "as low as 13.99,"
but then they add the
"1% activation fee," and
application fee...

But had to investigate them.

Has anyone had recent experience with Brookview Financial, in terms
of:
1. do they fund quickly after paying the $295 "pre-approval" fee, once a pre-approved investor submits a property that meets their approval?

2. do they refund in a timely manner the 12.5%+7.5% [6 months interests] they require to be placed in escrow, until pay off of the credit facility?
[& is this escrow requirement,
& 1% "activation fee" standard with HML's?
I don't recall anyone asking for those when we bought our eighth investment property in 2007---have things changed this much?!]

3. Any warnings [or positive reviews] about Brookview?

Lastly, for investors with excellent credit [800+],
how do portfolio lenders compare to Hard$Lenders, for purchase+rehab loans,
---e.g.
a. points
b. application or activation fees
c. pre-payment penalties, and
d. interest rates?

Or do portfolio lenders in Southern Cali & Maryland do rehab/purchase loans?

Thanks

Actually my balance sheet was attached as an addendum to the Fannie Mae 1003 Loan apps the private lenders required

since the Money Markets/CDs/non-qualified retirement account balances barely exceeded the loans outstanding on the first four properties,

I assumed the Roth and the IRA LLC balances were the reasons loans were extended on the last four SFH. A real estate attorney reviewed the mortgage and purchase contract, but you are correct that no attorney has specifically said, and the contracts did not stipulate that my retirement accounts were pledged as collateral, just my personal guarantee of the loans.

I would not ever sign a cross-collateralization agreement putting multiple properties at risk, after incurring the costs of putting each in a separate LLC to separate liabilities.

We wanted to stop borrowing with personal guarantees, as the debt side of the balance sheet is getting scarily high, even though each property has positive cash-flow w/a 10% emergency fund set aside for emergencies, repairs etc.

But mostly we want to get out of SFH & upgrade to purchasing medium-sized apartments.

So guess it's time to sit down with a good real estate syndication/SEC attorney.

Thanks Dion.

And I read the exact question to a Prepaid/Legal Shield attorney before posting the question here, and the attorney said yes that would be an okay way to structure it.

I guess I really got the quality of legal advice I paid for....

I was at a real estate seminar and a CPA said “talk with your attorney about difference between equity partners which are not regulated under SEC REG D rules, vs. pooling investor funds to raise funds, an activity which must qualify for one of the SEC Reg D exemptions...."

I've been reading diligently on the issue, and wanted to be certain I understand how to structure so that the LLC does not "sell securities" and hence does not need to meet one of the SEC Reg D exemptions.

Do I understand correctly that if instead of investors, capital comes from non-voting equity members in the LLC, sharing in the profits & risks pro rata to their capital contribution, then the LLC is not "selling a security"?

We already have 8 positive-cash-flow SFH properties tied to our personal credit history, and while local lenders seem are more than willing to keep lending purchase & rehab loans to us guaranteed by our retirement accounts, we want to move away from personal guarantees and toward perhaps using equity partners, as we start investing in small apartment buildings in BRAC communities.

Unless there is a better way to structure raising purchase & rehab capital than using equity partners -- any suggestions?

Thanks
Franklin

Thanks Joel
The land had been listed by a cml broker, who did nothing to market it, online or off, and we were lucky to uncover it right after the broker's listing expired.

Prospectus to syndicate the property will need an appraisal, hence I'm hoping some BPers might have some referrals to local commercial appraisers in the Research Triangle Park, NC area, as I'll be setting up meetings before I fly in later this month.

Can anyone recommend architects and appraisers in the area, other than those involved in the 12 Oaks project?

Thanks

I'm going to be optioning land from a FSBO, & hoping someone has a referral to a good commercial land appraiser or such in that area, so I can get a fair valuation on the land. Or is there an online service that does fairly accurate land sale comps? Thanks.