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(your email address) - where the real estate investor market is always hot. With real estate credit virtually non-existent, facilitating a direct 1031 exchange between property owners is a great alternative. is the oldest, most trusted, and fastest-growing online exchange website for the trading or property swap of commercial real estate properties.

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 Simultaneous Closings

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Lorelei Stevens - President, Wall Street Brokers, Inc. Seattle, WA. RE Broker & discounted note buyer since 1970s. A 3rd generation family member specializing in the paper business. Legal CED instructor & author of many articles for professional publications.

 A Gray Area Of The Law
This type of transaction could be considered a loan disguised as a sale.

The logic behind this questionable condition is that the seller never intended to carry the note, and if we bought the note, we could be considered a lender because we would be the first party to provide money.

If the transaction is judged a loan, the note broker and the note buyer could be required to comply with all licensing and disclosure requirements of the law. Failure to do so could result in severe penalties.

If the transaction is judged a loan, it could also be considered as a usurious loan, charging an illegally high interest rate. This could also result in severe penalties.

To avoid potential liability, buy notes that are "old and cold," well after the note was created and one or two months have gone by.

Courtesy of:
Wall Street Brokers, Inc.
500 Wall Street, Suite 405 - Seattle, WA 98121-1577
Voice: 206-448-1160 - FAX: 206-448-8476
Larry L. Stevens, Founder and Lorelei Stevens, President

Posted: 10/22/2001 6:28:15 PM

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