One banker I talked to who actually sort of did start a new bank had to buy an old charter and said it wouldn't be possible to become profitable until they reached a billion in assets.

So we are offering 20% equity in the facility to the backer, and offering 2%-5% to the securing party (our banker thinks she has a short list of partners here in Atlanta, but she will of course want something privately for her services in the deal).My question to the BP community is , how would you guys pitch this to the other families that are interested in backing the bonds with us?

I went to the conference I think 3 years ago.. and paid for and sat through the training.. it for me as a long time lender and NMLS licensed mortgage banker.. it was underwhelming.. very rudimentary.. the class rooms had a lot of what you would consider private lenders.. the vendor halls were all HML  anyone who has a booth and calls them self a lender is a HML not a private lender by definition, a private lender does not advertise has no license and you meet at REIAS problem these days is there are so many phony private lenders out there that are just due diligence pump and dump thieves.and most private lenders are MORE expensive than most HML these days and they have limited capital as they are private.that's my take on it..  

Covington - Coldwell Banker Realty - 714 318 5006 Cell or 714 836 4471 Home Office -  US Army Veteran

I would also suggest talking to your Banker one on one, explain your intentions, and Guage his feelings on it.

One of my bankers smiled when I asked him about it in my loan docs, and he said that the banks understand that it can devastate the economy if they start doing it, but that they leave that lingo in there just in case.I know investors from the 80's that went through the whole Savings and Loan disaster stuff that had their notes called due with no default on their part.

(Funny thing is I told that to a banker one day when I was walking him through my property management company and he said most home owners are in the same situation.)I will phrase this another way: I am satisfied when an issue in one of my rentals costs me only a reasonable amount of money and none of my time.My company does  such a good job they leave me free to do what I have a passion for which is helping other people improve their lives financially.Chris

My banker there told me it would cover up to 4, but she wasn't the one in charge of mortgages so it's possible she was incorrect.

The local banker has given 2 % loans to make some projects move forward.  

Caleb Heimsoth My father is a banker and informed me that I could wrap closing costs into the mortgage.