All Forum Posts by: Curt Smith

I called around today and googled. I ran across a broker, who sold loans through what he claimed the only 2 non-recourse lenders on SDIRA realestate in the country: NASB, First Western.

Please add any other lenders. I'm in GA.

They just don't want to deal with the type of rental properties we hold since the down turn, here in Atlanta ~$40k-$50k purchase + rehab now are worth in the range of $100k thanks to the Hedge Funds buying this summer. They don't want to fool with these nice rentals! Here's what Zooker from NASB said:

"We are currently financing single family income producing property at a maximum 70% loan to-cost, multi–family, condos, and town homes at a maximum 60% (CA, FL, AZ, NV, MI, OH max 55-60% on any property). The loan amount is determined by the property condition, cash flow, retirement reserves, recent property history, and note we have a minimum $50,000 loan amount. The bank fees for a purchase transaction are 1% of the loan amount (1.5% if cash out owned greater than 6 months) plus $695 in processing/underwriting fees.

The interest rates for a non-recourse loan are 4.25% for a 5/1 ARM (fixed for 5 years then adjusts annually over a maximum 20 year time period), 5.625% for a 10 year fixed, 6.375% -15 year fixed, 6.75% - 20 year fixed. Special quotes will be given for larger multi-family property

Unfortunately these do not work as we require a 3 year seasoning period to look at value and even then it can be difficult.

These are portfolio loans and management is more stringent on approval; minimum purchase prices would have to be 70-75k for us to take a look at them"

So from my 2 hrs of research and calling, It's fiction that NR lending is available for typical SD IRA investment rentals, least in the South East where rentals are typically bought for less than $50k. Maybe this info will be helpful for the NY and SF folks where investment property is many times what I paid...

--I'm open to private borrowing, but the lender would have to be content with at most 9% simple interest, no/low points, 50% loan to current appraised value, seasoning less than 6mo.

Good luck folks, curt

I'm finding it alot of tedious work calling the non-recourse lenders to get rates, fees, pts etc. I suggest BP puts up a permanent post at the top of this forum that has a list of lenders and a table comparing each.

Who offered NR lending at 4.75%?

tnx curt

http://www.privatelendingmadeeasy.com/products/

Just adding to this thread that there's teachers etc for private borrowing. I've bought Cowgills stuff. He's an expert and comes with the forms etc for the deal and he has packages covering getting SEC registered which I recommend so you can advertise.

Prior to registering with at least your state SEC as a borrower you can't borrow from strangers or advertise even from a website. IE you need to state with the exempt catagory of lenders: friends, family and associates exemption most states have. To be an associate most state's SEC states you need to have know the lender for 1 month and met at least 3 times. Each state may be different.

curt

Greetings, I've bought Alan Cowgill's private borrowing course but I must have fallen asleep when the topic of non-accredited lenders came up.

I plan on registering with my state, GA, and Fed SEC so I can advertise and borrow from strangers in other states. How am I limited when registered to borrow from little old ladies who only have $500k to their name and they want to lend me $100k and I don't know this person?

I could stretch out the relationship and have 3 meetings exceeding 1 month and then they'd be in the "Associates" bucket. Does this alone allow me to borrow from non-accredited lenders?\

Thanks, curt

Keith, FWIW / FYI There's a few course / info sellers on private borrowing. Alan Cowgill is one if not the main national teacher / info kit sellers. It's money,, $1k for the whole kit.

http://www.privatelendingmadeeasy.com/products/

There's other how-to sellers I hear but I only know about Cowgil.

I heard a few speakers talk about the SAFE act and it seemed that near term since we are still in the grey area as most states solidify what it will mean, borrowing for just your own business you are safer. If you broker, well,, that's brokering and was a licensed activity even before the SAFE Act.

Your scenario is standard private borrowing and Alan's basic system covers it and the forms/docs used. Since it's your friend, and in FL, there's no state or Fed SEC registration needed. Your friend falls into the exempt lender catagory, Friends, Family and Associates. Most states have a max number in this catagory and max amount raised per 12 month rolling period. I don't know FL's limit but it could be around: 25 lenders and $1M which is common across the states.

curt

I'm looking for a private lending (borrowing) discussion group. I'm a student of Alan Cowgill but still have a few questions re SEC registration to legally be able to advertise to strangers.

After registering with a few state SECs and federal SEC (not difficult or expensive with Cowgill's SEC kit) can I borrow from non-accredited lenders? For some reason the accredited only vs can borrow from non-accredited issue was not clearly stated in my reading / listening to Cowgills course... I probably dozed off at that point.

Thanks, curt

Dennis, I'm slowly learning that point that multi-family has some advantages. There must be biggerpocket's blogs and forums to now jumpstart the how to sort through and find good multifamily properties with motivated sellers?

tnx curt

Greetings, I'm a buy and hold/rent investor in Gwinnett County GA. I have a deal for a rental, $39k, $1k / mo rent that I'd like to control with hard money and within 13 months or less replace with longer term private money.

About $4k in repairs for $43k at $800/mo reserve adjusted income equals: 22% cap rate but lets round down to 20%. So this deal seems to be able to afford paying 15% hard money interest rates or less since the loan would be 80%, assuming the lender calculates value much higher than my purchase price.

I'll have to tack on $4k or so from what I've seen as minimum points, still the cap rate is still good.

Any comments, advice?

Referals for 13 month and longer lenders in GA?

Limaonecapital.com is one who has 13 month and longer programs. that I'm talking to FWIW. I'm not name dropping limaone, just mentioning as a possible borrower and as an example of the programs.

Curt

Thanks Michael, I'll keep my ears open if who ever I find to do the work mentions geneis/agentpress. I'm still wanting someone else to do the work, then I'll take over operating the site, setting up campaigns, blogs etc. I have too much to do than to spend time learning WP, plugins etc etc.

BTW I like the layout and function of your site;.

curt