Posted by BR on September 28, 2008 at 14:49:19:
Wow… it’s been a long time since I’ve been to CREOnline. If my memory is correct as long as you don’t pool funds it should be okay as far as Security violations are concerned unless the laws have changed… and they very well may have changed since then. You might also need a Real Estate License. It’s been a long time since the Merle Wooley days. Earning the confidence of those folks the way Merle did would not be an easy task this day and age.
private lenders and Merle Woolley - Posted by Tom
Posted by Tom on September 15, 2008 at 14:43:24:
I’ve been studying the business model of an old stalwart from this board long ago - Merle Woolley. His strategy was to buy houses under market using private funds from people who had money sitting in low interest bearing accounts. He would then lease option those houses for a period of 3 years.
He would make money on the spread of interest rate - private investor gets 8%, tenant buyer at 10%.The note would be interest only for 5 years. Then investor could get paid off or reinvest in another property. Then he’d get an option fee and also make money on the back end when the property sold.
My question. Is this kind of private lending common. Anybody doing it on the board. I’ve heard of hard money for rehabs but Merle does this with normal people.
What about the SEC. Guru John Ulmer got in big trouble with the feds doing something like this.