All Forum Posts by: Tevis Verrett

@Brian Gibbons I tend to agree with Ali. Hard and private money is expensive. Borrow my money and you will pay double digits in interest and pay massive points. This is not equity stripping, it is doing what the rich do, leverage other people's money.

HELOCs (home equity lines of credit) are a STELLAR way to free up and re-invest illiquid equity. Sister Ali, throw up a little bit of note hypothecation on that seller carry back, and you've got random creative.

Tevis

I agree with my learned and thoughtful brothers and sisters above, and think it important to elucidate why one must be careful lending private money and why it is safer to lend money through a broker. . .

It is called usury

http://www.loanback.com/category/usury-laws-by-state/

I an effort to protect consumers from predatory lenders, they have thrown out the baby with the bath water and have clamped down on private lending from citizen to citizen. If I lend my money out to my BP brethren WITHOUT A BROKER I subject myself to usury. If I exceed the 10% in California, I face a judge invalidating the contract and being fined treble damages.

(. . and usury is kindergarten. Dodd/Frank will put a freezing chill on seller financing)

So I think the conversation evolves into the difference of direct lender versus a hard money broker.

Corey is direct money, we are direct money. We are both premium money, asset based, quick fund and registered with the DRE. That is the definition of HARD vs soft money!

With that, let the conversation continue. . .

Tevis

I think the world of Corey, she is both a friend, colleague, and has a heart of gold! I recommend here unquestionably.

Thanks for keeping us informed!

Tevis

I agree with Jon.

We like to see skin in the game to at least cover points,closing costs and debt service coverage. Prepare to pony up bank statements showing reserves and/or cross collateralize another asset. . .

Tevis

@Account Closed Pleased to be able to give back to my brother.

In the thought process, let me take you around to the other side of the pricing argument. . .

For a $1MM investment I can buy a pool of NPNs nationwide for as inexpensively at ten to seventeen cents on a dollar (definitely not in CA-which is more expensive).

If I want to buy onsie twosieys, I can buy from a contractor whom buys the same pool and then marks it up. At that point the same NPN cost 30-45 cents on a dollar.

. . .note: never close to 50 cents on a dollar.

Commercial NPNs do run as high as 65 cents on a dollar, and it is because they are more stable.

I would never take a bet of anything above 40 cents for the same reason that Charles said, you dont know what is inside.

Also, the notes available to me have the homeowner still in the property, giving us numerous exit strategies (loan mod, deed in lieu, forclosure and leaseback, etc. . .)

Hope this helps, and please give me call for further clarification. I will put you in touch with my source. . . heck sounds like an eventual lunch get together!

Tevis

Whew, read the whole doggonit. @Andrea Pace you are a house-o-fire!

Might I offer, slooow down and come meet people! I agree with J Scott that you need to develop your ask, better.

Both @Ellis San Jose and I run REIAs. Go visit him in Westlake and/or come visit me in Santa Clarita.

You will definitely become the life of the party very quickly. . . . and what the heck, I may just put you under my very large wing!

A gentle warning, the dreams merchants prey on noobs asking for mentors. Protect your wallet, and just come, bring the rain, and your experienced partners will emerge.

Disclaimers: Your mileage may vary, objects in the mirror are closer than they appear, and I play a real estate investor on TV.

Blessings,

Tevis

Dear @Ursula Schwarz a warm welcome.

The quickest way, new realtor, to get your feet wet is to begin attending REIAs We have a network from Santa Clarita out to the Beach Cities. Look me up in my profile and get in touch. I will make you my guest.

And above all, leave your wallet at home, there are a lot of dreams merchants preying on noobs.

Learn here, learn in the good REIAs and welcome to the BP Family!

Tevis

@Shequann Burrwell I will take this bet.

PM you now!

Tevis

@Wes Love Interested!

Innovative approach, I will PM you!

Be well,

Tevis