As a investor who want to loan money to other investor and they buy Hud And Bank home. I would get the money to loan out from other people IRA and pay them 10 % on their money and I would pool it all together Then loan it out to other investors and they would pay 10 points and 15% for the loan I am looking to loan out $50,000 to 100,000 at a time and more. Do I need a broker license are can i do this without them is it ok to get money from other and do this.
I think you have alot of SEC regulations to comply with especially with regard to pooling peoples money…You need to register your securities and do a whole lot of disclosures it will turn your head around!!
Get a SEC attorney or some who specializes in securities to help you out… that would be the best place to start.
Not impossible but you have to comply to do it right!
This is correct. Basically, you need a legally compliant prospectus and proper filings with the SEC. There may be state requirements as well. If you fail to be 100% compliant, you are personally liable for all investor losses and possibly subject to consumer protection laws.
Hard Money Loans provide Investors access to capital to purchase investment properties. They can fund quickly, typically within 72 hours of receiving the final docs from the Title Company. Hard Money is available for adequately collateralized loans on single-family residential houses and other Real Property including commercial projects.
I think you are going about it the wrong way if you want people to invest in this from their IRA in that it does come under scrutiy of SEC. I know it is much easier if you setup an LLC and allow investors to invest with you that way (you are limited on the memers though). You may even want to setup a hedge fund (which seems complicated but really isn’t) as they are mostly unregulated…although there is a lot of talk of this changing.
The SEC is not involved with IRAs. The SEC rules come into play when an investor attempts to solicit funds from the general public and pool funds. Having someone invest his IRA funds in your investment has no SEC scrutiny. There are some IRS concerns with prohibited transactions, but those are avoided so long as the IRA owner does not participate in the investment and is not a lineal relative.