All Forum Posts by: Rob McLaughlin

Look into Land Trusts for your properties.

A technique I have used before that might give greater interest to your offer is ask that bank to finance the loan of the property.

Thank you Dion for responding. Reading the many other threads on "Crowdfunding" is very confusing. First of all what I'm trying to understand is a clearer definition for a very broad term; Crowdfunding.

As you know there are many different websites that started the term. Some for completely benevolent reasons like funding a person for $500.00 on the other side of the world, people chipping $10 -20 to reach the goal and not wanting a return on their money. Then there are some that do set you up for a return on your small cash. The same is applied for business startups, inventions to funding small movie productions.

Now the "Crowdfunding" term has morphed into mortgage lending, and nobody seems to have or want a more specific terminology. "Institutional", because clearly it is and of course not known as an IRS or SEC description. But there is a decisive difference in the types of "Crowdfunding" and any Industry (for profit) must clearly define it's self.

Then I read of all the talk that an investor must be accredited and how can we now be sure the person is accredited. In your post you clarify;

"The rule allows folks with less than $100k in net worth to give up to 5% to a capital raise or up to 10% if more than $100k in net worth."

This is the info I'm looking for, telling who's allowed to play in this game.

REO, means Real Estate Owned (bank owned). I'm going to look at a property today that it might be Bank Owned and they are saying they will Owner Finance the house. Banks acquiring (through foreclosure) and holding property? Because they have made conventional lending too high a hurdle?

I'll post what I find about this.

Without a doubt 2014 is the beginning of a new era in the Real Estate Lending Industry. Can anyone clarify the relationships of these three lending institutions. I think we have to determine this before we can attempt to understand the new concept of "Institutional Crowdfunding".

It sounds like Institutional Crowdfunding of Loans is just a new name for the same old players but may now include Hedge Fund Operators that have made themselves "accredited" and without "accreditation" you can not participate in buying into your slice of the Institutional Lending Pie?

The only new twist is that now with all the hundreds of thousands of homes that these have, ah-em, acquired(?) Institutional Lenders are now REO Owner Financing if not rehabbing to owner finance.

Does Instutional Crowdfunding = a Super PAC?

K. Marie Poe said: "

"Just because a property isn't "up to code" doesn't mean the tenants are living there illegally."

The tenants are not at fault for the building not being up to code; the current owner is. He is renting illegally. It sounds like why this is such a good deal is because once you buy it you inherit the problems, you inherit the potential law suits because the tenants have every right to sue the owner for making it a hazardous building to live in by not keeping code.

You should make the deal contingent upon the seller/owner either making the up to code improvements and/or have him deal with "his" tenants before they become "your" tenants.

If the building was unoccupied you could add up the costs of rehab. But with occupants it's a whole new set of liability issues that should be answered prior to you signing to your inheritance of "his/their" problems. It's always best not to make them "your" problems what ever they are.