All Forum Posts by: Account Closed

You need to tread carefully, or this thread is going to be Exhibit A in the 3rd partner's minority shareholder oppression lawsuit against your new clients.

Archetype Capital, an affiliate of auction.com, has $500k-$3mil lines of credit at 9.95%, 2 points, one year term. Google "auction finance."

I took this somewhat vague statement to mean that a foreclosure of the investment property was unavailable/undesirable for whatever reason, which is why the OP was attempting to look to other assets to collect on his note.

@Account Closed For what it's worth, my wife is an estate planning attorney and many "family trusts" are used for asset protection, but you're right that many are not - just depends on the specific trust language. To answer your question, the fraudulent conveyance theory is based on the general rule that, speaking very broadly, in many states transfers by a debtor while insolvent in order to "hinder, delay, or defraud" creditors are subject to being set aside. In the OP's original scenario, the debtor apparently defaulted on a loan (suggesting insolvency) and then transferred property out of her own name into a trust (suggesting intent to hinder, delay, or defraud). The new fact that the transfer to the trust preceded the investment loan substantially hinders the claim, I would think, since the original lender presumably did not rely on the equity in the house when making the loan if it wasn't a personal asset, and OP steps into the lender's shoes.

There are of course many, many caveats. Was just offering a general impression that the best bet might be a fraudulent conveyance claim.

@Robert Howell No one other than a MO/CA lawyer is going to be able to answer that question with any degree of confidence. My baseless opinion: your claim is very shaky, both because you have no real evidence of fraud and because you likely have a statute of limitations problem.

I don't know the first thing about CA law but it is quite different from GA if a trust offers no asset protection benefits.

Many state-specific issues here, primarily the statute of limitations and fraudulent conveyance rule in Kansas. You cannot foreclose on a property that has been titled in a trust for 6-7 years and did not originally secure your note without a judgment/court order (assuming KS is a non-judicial foreclosure state). You need to reduce the note to a judgment against the debtor before going after other assets such as the personal residence. Since the transfer to the trust is public record, my guess is that your fraudulent conveyance claim will be time-barred, but you never know...look up how long the statute of limitations is for fraudulent conveyance in Kansas and when it accrues (i.e. actual or constructive notice of the transfer). Not legal advice.

What kind of deal is this? Who is doing the work? Did you mean business partner or "partner"? I'll assume the former, unlike @Bill Gulley ...

You are putting up $20k cash, he bears the financial risk if the deal goes south...all else equal, I'd say a fair profit split would be 70/30 or 60/40 in your favor since you have skin in the game and his risk is contingent.

Man, that is some serious integrity (or risk aversion).

Read this thread and then google "Rollover As Business Startup."

http://www.biggerpockets.com/forums/51/topics/64364-robs

This structure may allow you to get where you are trying to go, but it is not without its risks.

My understanding is that you could do a ROBS (Rollover as Business Startup) using your 401k money to fund your rehab business. There are many hoops and pitfalls for the unwary, so talk to an expert. Setup and administration is also not cheap, since you are essentially setting up a retirement plan for your business funded with your 401k money, so may not be worthwhile depending on how much money you are planning to use.