All Forum Posts by: Andrew Yu

Seller is open to sub2, but wants to buy 2nd house. Does their 1st house's debt count against debt-to-income ratio when they apply for loan on 2nd house?

But the house is not in his name, and he does have proof of original contract and exact payoff amount from the orignal seller. My thinking is the debtor won't even know the house is his, so there's no way they can put a lien on it @Ryan Blake

I have a seller wanting to sell his 10 acres of land and his house on it for 30K. Half is wooded with cedar tree, the other half is just grass. It has water and electricity. The house is nice too, 3 bed 1 bath with HVAC, energy efficient windows, and hardwood flooring. Everything is setup very nicely. The road to the property is paved too, not terribly far from city limit. So the house itself is worth 40K at least from my guess. I looked up recent comps sale records. His neighbor with also 10 acres of ONLY land sold for 60K a few months ago...

However, the seller has a judgement (close to 200K) that's gonna go in effect on the 18th. He bought this property with owner finance, so he doesn't have the deed yet (contract for deed or land contract), still owes about 20K, wants to make 10K profit. I know there's no way title company can do title search and close before 18th. So the seller is concerned if we close after 18th, then that 10K profit of his will go straight to his debtor. How can we avoid that and make this a deal? I plan to wholesale it btw.

It makes sense. Thank you guys very much :)

Can you wholesale property that you don't own using your self-directed IRA? My IRA custodian doesn't allow that... I wonder if this is custodian specific or a general IRA rule.

So the seller has affidavit of his dad's small estate, but didn't pay off the 55K debts basically. Can we pay off the debt on the property and purchase the house from him?

I encountered a seller that inherited a house from his deceased father. He went thru a small estate court in Arkansas, got affidavit and has the right to sell the property but hasn't done so. But recently he discovered the property has about 55K judgement lien on it. But the ARV is around 200K.

So my question is... does he have to go through full probate in order to sell the property? Also does the 55K judgement lien have to be paid off before he sell, or it can be paid simultaneously like a mortgage loan when the buyer wires in money on day of closing?

@Carl Fischer Thanks! It's always good to double check with another authority.

I have an IRA account with uDirect IRA. Later I realized it doesn't allow account holders to sell what they don't own. So I can't do wholesaling with my IRA account. I decided to create my IRA owned single member LLC, so I can have checkbook control. My IRA's full vesting name is <account_holder_name>, Legal Owner Via Non-Trust Custodial IRA With AET, which is the sole member of the LLC. I created the LLC as such.

The part I'm confused is the Responsible Party on SS-4 form of IRS. My custodian doesn't allow my IRA's full vesting name to appear as Responsible Party. Only <account_holder_name> IRA is allowed... I'm fine with that. 

Then their attorney told me to use my own social security # as the Responsible Party's tax id... But shouldn't the Responsible Party's tax id be my IRA's tax id? I mean my IRA is the owner of the LLC after all, not me.

@Anthony R. Right. I agree with the two lessons you mentioned. 

I think I will first report theft of property to PD about them. So they have misdemeanor charge. But what's the eviction procedure for tenant moved out without notice? I know if tenant lives there not paying, you can serve them Notice to Pay or Quit within 3 days, then you file Writ of Possession. What's the process for this case then? Also my lease was month to month, with a 30 days written notice to vacate. Maybe just a Writ of Possession?