All Forum Posts by: Shafi Noss

@Jay Hinrichs Ah, that's much more normal. You said "100% of our funds were investors" then "my capital came from bank Lines of credit NO investors", so wondered exactly how much of the 100% was replaced.

Some guys I work with were getting 90% advance rates in Houston, but I think the banks are back to 70-80% now. Interesting about the wind-down structure, I'll look into that more. some existing HMLs that don't have cooperating banks right now and probably would be glad to have it.

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Quote from @Jay Hinrichs:

Quote from @Charlene Kingsnorth:

To Chris & Jay,

Thanks for the comments. To be clear. We have a RE attorney & mortgage broker to make sure our operation is legal & compliant. The Note/Mortgage for each loan states the dollar amount invested & the % of the total loan by name, for each investor. We offer the mortgage investments to our investment group & service each loan. My question is: On new loans-how can we collect from each investor a small fee for our monthly services. As the largest investor in each loan, we do receive the points at closings. I have heard that it is common practice that private money lenders collect a monthly fee thru various methods, I'm trying to determine what those methods are. Is it possible to have a phone conversation?

When I had my traditional HML company and 100% of our funds were investors. ( 250 investors 50 mil) all loans were fractionalized ( this was Oakland CA and Bay Area loans) I could legally do those as a CA RE Broker. We simply charged 1% service fee.. so if the coupon ( in those days was 15%) We dragged 1% and divided up 14% to our fractional owners.. Very simple as Chris notes its just an up front agreement.. Pretty much all lenders in business to lend money will charge a service fee to the investors.. and take it out of the gross monthly payments.. No major thought process here very simple.. As I morphed in 2002 and started another HML my capital came from bank Lines of credit NO investors.. So same thing I paid my monthly payment to my bank and kept the rest. Points and the Delta on the spread.. in those days I was borrowing on my LOC's for about 7 to 8% apr.. and lending at 20% apr..

Are you saying your banks were doing 100% advance rate at 8%? How times have changed.

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Hey Alix, I live in Bethesda and may know someone. Feel free to PM me.

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Send me a DM so we avoid cluttering up Kent's thread, I'll send you the information.

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San Diego, California

I could recommend a couple of people to do consulting.

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Scott, I am active in the Houston market. Let me know if you would like to discuss structures we have used.

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Houston, Texas

I've got a property to sell that's sub 200k and rents for $1500.

1 Vote

San Diego, California

Quote from @Donald Hatter:

Quote from @Shafi Noss:

I am interested in building rentable SFHs in Houston. Currently under construction on 2.

You actually want to build them, or are you also looking to buying ones that are already built?

We are building 2 and are interested in more.

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Houston, Texas

I am interested in building rentable SFHs in Houston. Currently under construction on 2.

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Houston, Texas

#2 also applies for refinances

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All Forum Posts by: Shafi Noss

Shafi Noss has started 96 posts and replied 524 times.

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Post: New Construction Homes Investing

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