All Forum Posts by: Bryan Hartlen

Can I add a second question to this thread? Besides the worst case; What does everyone typically budget for FC costs?  We budget $5k for notes and $3k for CFDs.

@Chris Seveney what drove it to $20k.  I’m assuming it was contested but there’s got to be more than that?

We JV with private investors; They bring the funds and we do the work (we look for NPL).

My partners and I are relatively new to notes but have invested in both CFDs and mortgages.  CFDs certainly have the risks mentioned above (receiving our first violation from the city for unkept property was fun) but we believe that with proper selection there are ways to mitigate the risk.  Going forward we expect to continue to buy CFDs, but will do so only in jurisdictions where ejectment is closer to an eviction than a foreclosure.  We’re working on understanding where these markets are BEFORE buying CFDs.  Given that some investors won’t buy CFDs there’s also greater opportunity in that space.

We use JB Lloyd for portfolio protection.  Very flexible... not sure of their rates (but will check a few of the recommendations made here.  Thanks!)

I paid about $1500 to get ours setup. Note I couldn't get it done through my own financial advisor.  As for rents... basically any returns from a SD401k investment (standard or ROTH) goes back into the 401k.  Distributions from the SD401k are subject to the same restrictions and taxation as a standard 401k....  Money can be rolled over (moved) between regular 401k and SD401k accounts without being taxed.  As others have suggested, you should talk with a firm that specializes in setting up, maintaining and advising on these accounts. 

We use KKOS (lawyers) and kohlereyrecpas.com (CPAs)

Albert, it's quite possible. As you've heard, many here never see the assets underlying their notes.  The only twist for you would be any issues with the international movement of funds.

One other con of CFDs is that as the owner of record you receive any violation notices from town/city (kind of goes hand in hand with lower quality borrower).

@Gordon F., I agree with @Bob Malecki (sorry can't figure out how to reference people).  

It does take time to build up a pool of investors that have funds... one of the best ways to do that is to show people how they can get control of their IRA or 401k and invest. Where are you located? Do you have a SD401k/IRA expert that you could partner with to show people how it's done?