All Forum Posts by: Varinder Kumar

So I applied for an EIN through the IRS website, after receiving the EIN does it automatically show up under legalzoom? i created my LLC through legalzoom. I want to make sure it is all connected. Also on the letter from the IRS with my EIN it is my LLC name but it does not have the "LLC" part behind the name, does this matter? I know when i filled out the application online for the EIN it asked just to list the name of the LLC and leave the LLC part out of it, so maybe thats why?? Pease advise. Maybe im over thinking things lol. Thanks in advance.

@Jeff B. thanks much appreciate it. 

I am filling out the online application on the irs website and it is asking me for State/Territory where articles of organization are (or will be) filed?? My LLC is formed in the state of nevada how ever i am in california. The bank account i want to open is going to be located in CA also. Should I put down nevada or ca? Please advise. Thanks in advance.

go with Mid Atlantic.

you can use pro title usa. you dont have to auction it if you foreclose you can sell the property based on condition and FMV(fair market value).

No you are becoming the bank. You get your profits in number of ways known as exit strategies. You can either try to to a workout with the home owner in the form of loan modification to get them reperforming on their loan again if its non performing or you can foreclose on them and then sell the home and make a profit. You are investing in debt. When you purchase a note you are purchasing a percentage of the unpaid balance for example if the UPB (unpaid balance) is $70k then generally you pay about 45-60% of UPB so you would pay $35k if its 50% of UPB. Now since you purchase the note for $35k the AIV (as is value) would generally be higher than $35 or it should be but thats a part of your due diligence when you first analyze the note. Say the AIV is $50k well if you foreclose on them or if the property is vacant then you can just sell it for $50k and make a 15k profit minus any costs. The other profit comes from getting the owner reperforming by working out a loan mod to where they are paying less monthly to you for 30 years at what ever interest you decide. since you purchased it at half the amount you can afford to give them a lower monthly payment. This is just a small example of how notes profit works. Theres more to it.

-good luck

Pay it off man and don't leverage against it afterwords either. Use other people's money to invest if you don't have capital. I believe in free and clear.

Taxes come first! No way around it. Check your numbers on the purchase price of note and what your AIV is and with respect to taxes if you still have room for profit then go for it if not forget about it

no you will need an attorney to review your collateral file etc and dealing with foreclosure if you need. If you go on the forums on BP and ask for attorney references in the state your investing you will get some.

@Chris Seveney

Ah gotcha. Any areas in particular in Maryland you suggest? I am always open to other areas. What kind of LTV you looking for out there?