All Forum Posts by: Amanda G.

Hi Pedro,

A lot is going to depend on how much money you have to invest- maybe small multis are in reach, maybe you need a SFR. Where are you planning to invest- that matters a lot, too.

This is not going to be what you want to hear. Sounds like they are just not motivated. Are you going to be able to get a conventional loan for a property with that much damage? Mostly banks want the house to be habitable for conventional mortgages. Maybe run it by your mortgage person before you get any more attached to the deal.

It sounds like the plan for this is a flip?

Hey,

Hopefully that practice will let you create your own version in Excel or Google sheets. My own has gone through several iterations and now I use a modified version of a friend's.

They are significantly more expensive than conventional loans. They also might not want to handle a deal that small. Most won't consider smaller than a 75k loan. At 50k, your best bets are probably owner finance or other private lending. 

On the pragmatic side, it is very smart not to buy until you have enough financial padding to handle the inevitable expensive repair that will always come at a bad time. Don't use all your fund on the down payment, make sure you have saving for the cap ex, as well.

Hi! I'm also in Augusta. @Richard Capers Jr and I are both members of AORE (local REIA), maybe we'll see you there sometime!

@Sean McCluskey, yes, that's true. It is more complicated that way to have two loans. on the plus side, mine is smaller and if they pay it off early their monthly payment goes down without having to refi, which is a nice benefit. These are not buyers who are likely to qualify for HELOC, or they wouldn't be getting a private loan in the first place.

We could split the loan, but then we are attached to each other in this deal for the next x years until the buyer refis, sells, or the loan matures (assuming they don't default).

@Wayne Brooks, because I'd rather earn cash flow than a lump sum. 

@Carl Fischer, fortunately this IRA owner and I have built trust through a previous deal. (we did the land trust version sharing a note) So, I can structure the contract to the buyer with two notes and the IRA owner agrees the second one is mine at closing. Thanks for helping me think it through.

@Carl Fischer, thank you. I'm in process of doing one now, and the paperwork for the notes is the straightforward part. What I need help with is writing the agreement with the IRA owner. For a period of time, they will own the physical property in their IRA. Things could go wrong, like the house not selling for our planned price, or damage to the property that one doesn't want to bring to the insurance company. I'm trying to figure our how to write the contract with the IRA owner that allows for multiple exit strategies- just in case.

Very complicated note deal, looking for advice how to structure it.

A money partner with a self directed IRA wants to buy a property and then sell it with owner financing and keep the note. I have the deal for them, and for payment for finding the property, prepping it for sale, finding and vetting the buyer and getting it all to the closing table, I would like to receive a second lien note on the property instead of a lump sum.

How the heck would you create this contract, and what are the tax implications for me? am I going to pay taxes on the face value of the note as income, the payments as they come in, or ....?