All Forum Posts by: Mark Whittlesey

@Jay Hinrichs

Jay, Do you have any more info on this, especially as it relates to SDIRA funds?

If you live in CA then by law the sponsor of this note must do this through a CA. licensed RE broker and they must give you the disclosure form that spells out who your co beneficiary's are.. this is what I know I have do if I do a multi bene loan using my CA.. Real Estate brokers license. and the investor is domiciled in CA

Sadly, I am assuming this is real estate attorney territory???

And I guess I have another novice question.. Which state's laws apply here anyway?? There are at least 3 and probably more involved.

Thanks in advance....

@Jay Hinrichs

Update on this. Apparently, my note will be force extended AGAIN.

I won't be getting my money back in October.

Last extension  was for 6 months. This time is 4.. 6... months?? I am not sure exactly. But I am VERY unhappy that apparently I have no options other than to sit on this note and hope that I get bought out at some point. 

I have never been invited to any kind of meeting, phone call, email blast etc with all the investors on this note. So I have no idea what their feelings are in this matter. If the property is in as good a shape as the most recent update would have us believe (and supposedly is already 1/3 occupied with more applications in hand) then maybe the investors should be reaping the benefit.

@Jay Hinrichs You are correct. It is a fracionalized note. Sometimes yes an investor is bought out and sometimes the deal does go to maturity and investors are paid off from a rehabbed property which is sold or refinanced (to a more "normal" note).

Still trying to get my principle back via the buyout route. Interest payments do come in but I was forced to extend a note that I did not want to.  At this point I am expecting that I am stuck at least till October when the note extension ends. Hopefully I will not be forced to extend another 6 months.

And hopefully I will be fully out (of the other note) by the end of the year. Your point about the pitfalls of multiple investors/fracionalized notes is well taken. IMO, EBF is NOT doing an acceptable job as servicer. AFAIK there was never any communication directed to the investors when the note was coming due. It was just a forced extension. Sure, you could decline the extension but that just put you on a buyout list. Which for me have never come. Eventhough EB/EBF continues to send out marketing emails about all the "smart" investors who recently invested with them (in other buildings and notes obviously).

@Alan Grobmeier This is because EB/EBF make a big time windfall when a property is sold to a buyer-investor and that requires note-investors.  Basically. EB/EBF buys the property for X then sells it to Joe for 3X and Joe finances the deal with hard money from people like you and me. EB/EBF also typically makes a spread on the hard money repayment, collecting 15% from Joe and paying out 12% to me and you. But they may be finding that they need to offer you and me more to get us to finance Joe.

Interest rate hike risk

The best way to avoid this is to match the duration of your assets and liabilities. How long do you plan to own the property? If the answer is "forever", then you really do not want an ARM or a ballooon note. (Note, you may get away with having those products but the reality is that you got lucky.)

Yes, I have gotten principal back twice. I am still waiting on 2 principal payments. 

One is due in December. One was technically due April 1 but the note was extended. (I chose NOT to extend and was put on a "buyout" list so we will see what happens. I believe the note was extended till August.)

My guess would be more than 2 deals south unless it just so happened that I was invested in both of them because 2 of my... 5??? deals went south.  This was an issue of terrible oversight of a crooked contractor.

I was made whole by the buyer on one (with the stipulation that I roll over the funds into another of her deals.) I do believe that EBF was making the interest payments themselves after the note was "extended". I believe that is happening with my current "gone south" deal..

Speaking to what Gary said.. yes, my real estate consultant is great too. The problem is that he always has to confer with someone to get me answers. He has no AP answers so he has to go to someone for that. And in terms of deals, the "go to guy" that my real estate consultant can go to.. also does not usually have the answers. So the communication can still use more ramp up.

Hope this helps.

Mark

I just got Susan's email for this course... 

And found this thread... from 6 years ago. Any actual feedback from the people who bought or were going to buy the course???

Can anyone recommend a lender who can do a commercial loan for a multi-family in Oklahoma. The loan would be (a smallish) 500-600K (which is the problem I am running into).

Thanks.

Well... in what ways were they good deals? Under-valued? Good rentals? Or what?? The best way is to write up a contract for one of those great deals and then assign it to another investor.  Best way to find them is at your local real estate investor meetings. You might also advertise on craigslist.

He is doing MASSIVE advertising on major radio in Los Angeles. That doesn't come cheap. I will leave connecting the dots as an exercise to the reader.....

Yes. Get a partner. Or better yet, sign up a deal and then assign it to get some cash rolling it. If you can find the deals, you won't need money. The money will come to you.