All Forum Posts by: Carl Henriksen

Hey guys, just a quick reminder that you may find it prudent to run any JV agreement through your lawyer, or better yet, have your lawyer draw one up. You all are great people, but there is no way in hell I'd use a JV Agreement that someone sent me here on BP. And "simple" is not necessarily a synonym for "good". Simple could mean "missing important language that protects you if something goes sideways."

@Okeoma M. Thanks for your feedback. It's amazing how something that seems so simple at the outset is really much more complicated. I'll be checking with my CPA. 

@Don Konipol - the gentleman I have been looking at working with DOES purchase owner-occupied (and rental) properties and does do loan modifications. If he were required to have a license, which license would that be? He hires companies to do the servicing.

He seems to be quite familiar with the ins and outs of dealing with note-related landmines in each state that he buys in, but this is clearly a different issue.

Thanks again for everyone's participation in the conversation.

@Bob Malecki - perhaps you wouldn't mind giving feedback on one more matter. The manager of the fund will be buying the note under his LLC, and ownership %'s and responsibilities are detailed in the JV. All funds are kept in a banking account specifically created for this note. Hoe do you feel about this?

@Bob Malecki - Thanks for the reply Bob. This is quite helpful - I've looked over the JV agreement, but it's not clear how the notes are owned. So based upon what you have stated, If I'm going to use my 401k solo trust to enter into the agreement with the manager of the note, then this is not an issue. If both my wife and are are going to go in on the same note (along with the manager), then we need an LLC or an exemption filing, correct? Thanks again for your feedback.

@Jim Workman

I've got a checkbook control 401k solo trust (thank you @Mark Nolan). 

Jim, would you mind elaborating on what your custodian is picky about? The gentleman that I would be entering a JV with has clients who use questions frequently.

@Patrick Desjardins - thanks for your feedback. So what you're saying is that he should really have a securities license of some kind, yes? Whereas I would not need one in this scenario?

Thanks again for the feedback all.

Hi all,

Went to an investor's meeting in my town and the organizer invests in performing and non-performing notes. He says the typical length of time in a note is 6-12 months, and sometimes longer if he needs to foreclose, etc.

The plan would be for my wife and I to pay the up front costs (from our 401k self directed) for purchasing, and he does all the work. 50/50 profit split.

We would be entering into a JV agreement.

The big question is: does anyone (myself and/or the LLC we would be entering the JV with) need to have a license of some sort? I've done quite a bit of reading here on BP, and did not reach any firm conclusions.

The LLC owner says he is not selling securities and thus is not required to have a license. My RE attorney said to ask which licenses he has.

Your help and feedback is appreciated. The last thing I want to do is jeopardize the monies in my 401k trust due to trusting when I shouldn't.

Thanks in advance.