Home: Message List - Private Lending Questions

Re: Private Lending Questions

M1S96F1 — Sat, 29 Mar 2008 17:35:01 GMT

The problem is that the market is horrible for residential development right now. I don't what areas of the country you are looking to develop but most areas such as Florida, California, Las Vegas are overbuilt. The private investors and private lenders that I deal with are not looking at any type of residential development unless it is in certain areas of the country. If you would like to discuss more, please visit my website, www.msfcapitaladvisors.com.

Re: Private Lending Questions

LUCKIEST — Tue, 01 Jan 2008 17:48:51 GMT

Simple ROI works
well in situations where both the gains and the costs of an investment
are easily known.
Other
things being equal, the investment with the higher ROI
is the better investment.

In complex business settings, it is not
always easy to match specific returns with
the specific costs that bring them, and this makes ROI less trustworthy. . Simple ROI
also becomes less trustworthy as a useful metric when the cost figures
include allocated or indirect costs..

Business investments
typically involve financial consequences extending several years. In such cases, the metric has meaning only when the time period
is clearly stated. Shorter or longer time periods may produce quite
different ROI figures
for the same investment.

LUCKIEST.

Re: Private Lending Questions

Lighthouse24 — Mon, 31 Dec 2007 17:34:15 GMT

Wow, losing funding on something in the Arlington entertainment district right now doesn't just say "the market is really weird right now" -- that's seems almost SCARY weird to me!

Re: Private Lending Questions

DomainDiva — Mon, 31 Dec 2007 13:25:21 GMT

A guaranteed % ROI that does not perform will land you in a heap of trouble. With all of the hedge funds and investment banks now being sued by investors why would you even consider this? How would you consider yourself different?

The bottom line is that banks are not loaning money on real estate projects right now.

I can speak from experience as we own a three acre tract 3 miles from the new Cowboys statdium that we are developing. We lost the financing for the street and utilities and have had to barter out those services with a contractor that wants another piece of property we own. Nothing against us...its just that well the market is really weird right now and these banks have to look at all of the bad real estate they are holding as well.

Back to your question. There are ROI guarantees that say you will have a return on your investment. As far as giving some sort of figure I would so steer clear of that. However if you are set on doing this, you will need to contact an SEC specialist. I would not touch anyones elses advice.

Private Lending Questions

callaninv — Mon, 31 Dec 2007 06:21:00 GMT

I have been involved in the real estate business for the last 5 years. My business is a combination of residential renovations, spec homes and I have one minor subdivision under my belt. Currently I do about 4 projects a year, in order to take this to the next level I am looking for private investors willing to lend money secured by real estate. I already have access to a number of banks and hard money lenders. The hard money lenders kill me with points and the banks have so many hoops to jump through, I can't close quickly on deals. Also with the down turn in the real estate market banks are looking for much larger downpayments for commercial loans than before.

Anyway... getting to my questions. Since I don't know any private investors, I need to do a little marketing. My concern is marketing an ROI will I be violating any SEC or lending rules?

Thanks,

Nathan