I'm a beginning investor and i see the power of using private funds but i just don't know the proper and legal way of doing this.now i know about talking to people you know, other investors, and marketing to other high net worth individuals, which all of this i would consider the first step in the process.the second step i'm guessing some will say is working out the agreement/financial details with the your private lenders once they say they want to invest (which i plan on doing all this in step one, letting them know they're either going to invest as a lender or has a partner and this is what they'll get in either scenario)but my questions are:1. when do i have to worry about the SEC?

Correction: FDIChttp://www.fdic.gov/bank/individual/failed/silverstate.html On September 5, 2008, Silver State Bank, Henderson, NV was closed by the Nevada Financial Institutions Division and the Federal Deposit Insurance Corporation (FDIC) was named Receiver.

Tomorrow I'll be presenting the contract to the banker and escrow company. one thing i'll say though is that this being our first time writing a contract directly with an individual, it has been pretty exciting even though my nerves are shot.

Like Richard stated....join the investment group.....get with individuals who are successfully doing what you are wanting to do....then copy their process.

But I've been spoiled in the past when I could see a place and instantly get a property profile.It seems the data services are really set up so that individual investors have to go through someone else to get data.

I will mail each individual three times over the course of three months (ok, so I only mail 900 a month...these aren't exact numbers!)

One would be to acquire individual properties from these GPs.

We are electrical contractors so there is little difference, but there are some areas I can give examples:Homeowners want a Square D QO panel which is rated the absolute best for safety (and has been for years), rentals want Homeline or low end equivalent.Fixtures can make a huge differece - $4.97 Home Depot special for rentals, selection process for Homeowners (HOs) to pick the perfect fixture as per their individual tastes.HOs may want Decora style switches or receptacles (sometimes in screwless plates or specialty colors), REIs want economical, standard in white or tan (stock).REIs often have very little hand-holding.

If you're doing something that's likely to get you personally sued (not as the business but as a private individual), I still don't think it would hold up in court b/c essentially you'd be giving ownership of the property to the LLC and then, what, renting it back from the LLC?

Are you asking about wholesaling foreclosures, or wholesaling and foreclosures, individually?