All Forum Posts by: Alex Booth

@Michael Plaks regular business model is the purchase of notes and DOT. I also have rental properties. This would be the first land subdivision deal.

can you expand on it throwing a wrench into preferred tax treatment?

I'm taking a plot of land and subdividing into 10 acre parcels to sell off with owner financing. For easy numbers let's say the 10 acre lot is $100k and I can sell each 1 acre lot for $25k financed over 5 years once divided. These are lots for mobile homes with no paved roads or city utilities.

How does this affect me from a tax perspective? Am I only taxed on income physically received or am I liable for a $150k short term capital gain if I sell these lots within 1 year?

I agree with Chris and Don. Last year, I built a note investing calculator and kept tweaking it as I learned more. I'm no Excel expert, but it helps guide my capital allocation decisions. Don makes a good point: focusing too much on numbers can make you overlook risks and pitfalls—not just in notes, but in any investment.

I've got a spreadsheet I'd be happy to share. Personally, I learn best by diving in, so I'd suggest starting small—maybe buy a land note or a partial—to get hands-on experience with minimal risk.

For reading, I'd recommend "Invest in Debt" by Jimmy Napier. Also, the JKP Holdings podcast is great for on-the-go learning.

 I noticed that a title O&E report is not listed here. How do you ensure that title is clean before a note purchase (on or outside of paperstac).

@Chris Seveney was able to find her and enlist her for this year. Thanks for the reference!

@Lauren Sanford thanks Lauren I'll check it out.

 Would love to get that reference if you don't mind sharing it. Been through a few book keepers who don't seem to understand this space very well. 

I have a bank locally that will use DOT as collateral for loans. Otherwise, you'll have to go for a hard money lender and expect 12%+. Private money may be better.

There are a few facebook groups that are pretty active. Keep in mind that even with such a low LTV, you might not find anyone to lend above the UPB of the note.

Even if you do, those that lend using a note as collateral will charge you hard money rates. Take a look at local banks though.