I'm Not Licensed To Lend Money - Posted by Marvin Seawood

Posted by John Behle on November 10, 1998 at 24:15:25:

Please give a few more details and I might have a lender for you.

I’m Not Licensed To Lend Money - Posted by Marvin Seawood

Posted by Marvin Seawood on October 15, 1998 at 17:48:39:

If I buy part of a note, have I made a loan - or is that
something I have to research for my particular state?

Also, is the licensing issue the reason a note buyer
would say that they do not provide table funding?

Re: I’m Not Licensed To Lend Money - Posted by larry kirkland

Posted by larry kirkland on November 09, 1998 at 11:59:29:

looking for $3,000.00 for short term 120 days will pay back with what ever int. rate lookig to close a lease on some comm.property thank you

Re: I’m Not Licensed To Lend Money - Posted by John Behle

Posted by John Behle on October 18, 1998 at 11:33:02:

The way I do partials has always been safer, simpler and more profitable. I do not use a contractual method like most. I use what I term the “Compensating Note” method.

Let’s say I buy half of a note or cash flow. I give the note seller cash for the half I am buying and a note that mirrors the other half of the note. It can be secured by the note I am buying, but I prefer to secure it with some other form of collateral, like another piece of real estate.

I’ve found this much simpler to explain to a seller. I own and control the whole note and the risks of it being construed a loan are non-existent. My upside profit potential is much better and the risks associated with delinquency of the note or financial problems of the note seller are gone. It’s a little too extensive to go into here, but I’ll see if we can post an article I wrote titled “The Whole Story about Partials”, which is an excerpt from “Advanced Discounting and Negotiating Techniques”.

Re: I’m Not Licensed To Lend Money - Posted by Terry Vaughan

Posted by Terry Vaughan on October 16, 1998 at 13:42:13:


  1. Remember, You have a right as a private person to invest your money. You can even make loans, and charge interest (within the laws of your state). In this case you are NOT making a loan, IF you buy existing notes. If you purchase a mobile home note, (perhapes a seller carry back note?) and the dealer or person selling the home, sells you the note, my attorneys tell me you are purchasing an asset, NOT making a loan. If you loan a person the money to buy the home and carry back a note to recoup your money - then you ARE making a loan. The correct way to do the deal is to have the seller as the beficiary on the note and have the note “assigned” to you in the closing. This is the way most large companies do it, including “GreenTree” and “Security Pacific Housing” (BofA). I learned this from a former SPH, 20 year executive, while he was still with BofA. Check with your local legal council for confirmation.

  2. Table funding has always been used differently by different people to mean different things. I would clarify what you mean by “table” funding when talking to prospective investors or companies. I have always looked at “table” funding as “receiving my money, for the note I am selling, at the time it is created.” The players in the actual creation of the note are another matter. To me, “table” funding is another way of saying, “concurrent closing”.

Hope this helps.