All Forum Posts by: Daniel H.

If you are the owner, seller financing, you are the lender, if you are in the business and doing multiple transactions, it does not matter that you sub-service underwriting or servicing, you are still a dealer and a lender. Sub-service is subbing out work the lender is required to do, it certainly helps from your work load and you can hold others responsible, but they are working for you, you are the lender. The compliance falls on your business entities, each one.

Your partners are basically table funding as lenders if they are buying the note at settlement.

"Investors" that form business entities to buy and sell notes are probably messing up from the get-go, they are much better off dealing as individual investors rather than forming a "finance company" doing brokerage activities......whatever! When they have some legal issue they will probably find out.

I'm guessing your attorney might be a corporate type that sets up entities, you better ask if s/he ever represented a financial institution in banking or mortgage operations, if not, find one. Same with the SEC requirements (that they may be more familiar with).

In your approach, with partners, this would be fine if you were developing or in a buy and hold, your complications come in by financing the sale of your homes and you can't avoid that past the exemptions allowed. I'd think there would be a better way, lending among your entities on a commercial basis and having sales through a primary lender-dealer.

@Ken Rishel deals in a similar area with seller financing dealers, different collateral, but the financing arrangements are very similar. Good luck :)

Thanks for the advice Bill. Would it be simpler to have investors individually purchase their own properties and then offer to sell them as-is via lease-option?

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Definitely get some other offers for comparison. How did you find the current HML?

Can you share how much you are looking to borrow, for how long, etc?

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Hi Lisa,

Congrats on the sale!

How long did it take from the time you purchased the property to the time you sold the property?

If you use loans to fund the purchase / rehab, what kind of rates are being charged in Arizona now?

Do you use a website to market the property?

Thanks.

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@David Salfer You could pick a squarespace template and create a page per property, showing photos and descriptions. Embedded video helps also. Let me know if you would like help getting started.

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Does anyone see potential problems with the following structure used to hold rental property and have a third party manage it?

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@David Kosiorek

Congrats on so many deals David! Maybe there are things you can delegate so you can free up time and get a little more rest.

Are you building a website to showcase these properties and market your company?

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There are two business partners (John and Sean) who jointly purchase a rental property.

Sean found the rental property and identified it as a good investment.

John invests 100k to purchase the property completely (no mortgage).

Sean invests 20k to rehab the property and handles all the hands on work of managing contractors, and renting out the property.

How would you split the net rental income and ownership of the property?

Thanks.

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@Brian Gibbons

I would like to put some of my money to work earning 14% annual returns in scenarios such as you described. Could you please describe how you would go about finding and evaluating these opportunities? Thanks!

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@Wes Morgan

Hi Wes.

Did you end up having the LLC pay the mortgage and deduct the full mortgage payment from rental income?

Thanks.

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All Forum Posts by: Daniel H.

Daniel H. has started 4 posts and replied 36 times.

Post: Joint Venture terms

Post: Need advice on setting up a JV where I manage the funds/assets

Post: Hard Money Loan Application

Post: Deal diary in Tucson

Post: Need website for sellers of prop

Post: rental property in land trust, managed by 3rd party LLC property management

Post: 2nd, 3rd, 4th, and possibly 5th deals after deal 1 success

Post: How would you split the ownership on this joint venture

Post: Using hard money just to leverage offers

Post: LLC to pay personal mortgage?