All Forum Posts by: Herb Dorn

Yes, Jon as an owner occupant, you should be fine (provided you go through the Denver licensing process). We did own a STR in Sunnyside and we used a friend who lives in the area and did a nice job. Happy to ask her if she wants to manage your property if you would like. One other thing is to make sure your insurance covers STR. I'm sure there are a ton of other members who have far more experience than me, ours just happened to be in Sunnyside. Feel free to reach out directly.

Juline,

I think you need more information before making any decision.  Find a Realtor who has multiple sold properties (same zoning) in West City Park to establish valuation.  It makes no sense (to me) to not at least consider selling in today's Denver market as it's so rich for development.  I think you need to consider "loosing the land" if the proceeds will simultaneously provide you with both profit that could be turned into both income and a property that may ultimately be better fit for your goals...

I believe the distinction is between "debt collection" and being "licensed to purchase/own" mortgages/DOTs. 

@Christopher Winkler is exactly right regarding the Supreme Court decision surrounding debt collection as the owner of the debt, however we have found some state attorneys are still recommending having a debt collection license so as not to be the "test case".

As @Chad U. states, NMLS is the definitive site for determine mortgage licensing requirements (frequently separate licensing requirements for loan purchase vs. origination).

There is a third, and wholly separate issue of servicer licensing (also found on the NMLS).  An investor must first understand state servicer licensing requirements, then confirm that their intended servicer is licensed in the appropriate state if required (many will service a loan in a state in which they are not licensed, so be aware).   This adds to the complexity of the business as some servicers require the use of one of their "approved" attorneys in order to initiate a foreclosure action.

We suggest asking an attorney in the state where you are considering a loan purchase for their opinior on the above three questions.  Their responsiveness to these questions may also be a good indication of their responsiveness in general (a frequent issue that requires good systems and hands management especially as your business grows).

There are investors on this site with far more experience than myself and our company, but this is our general assessment of compliance overview in regards to required licensing.

Thanks @Brian Eastman, good consideration.  I would seemingly have the same issue regarding self directing a 401 that is "exempt" from 10% early withdrawal penalty due to retirement as a "public safety worker" in or after the year that I turn 50?

Good thread, the one thing that I have not seen mentioned is the fact that, as I understand it, if you were to (upon 'separation of service') convert 457 to SDIRA, you would give up the advantage of being able to withdraw funds penalty free prior to age 59 1/2.  Is that correct @George Blower?

This is a big disadvantage to me as we would like to be able to use some of my 457 for living expenses prior to retirement age, yet simultaneously I would like to invest the funds in higher yielding (read self directed) investments.  Any recommendations would be greatly appreciated.

I am headed to Las Vegas this AM.  I would love to take a moment meet up with anyone from BP (particularly those investing in the 2nd space).  Please contact me on the Whova app and lets set up a few minutes to learn about each other's business

@Kim Bayless we have spoken with both an attorney and the GA Dept. of Banking and Finance, and they report that a individual is no longer allowed the exemption with regard to purchasing a note, I am not certain on seller originated notes.  We are going through the lengthy and expensive process to obtain a lender license currently...not fun.  

@Sandy Uhlmann we primarily purchase 2nd position NPLs, but we have been able to obtain verification of insurance (and included as "additional insured") with either homeowner authorization or submitting assignment of mortgage to insurance company.  Different companies seem to have different requirements.

I'm planning on attending.  Thanks.

Hi Kevin,

We have both rehabbed and wholesaled houses that needed significant mitigation work.  It is difficult to anticipate the expense without having an industrial hygienist test to determine both levels (of contamination) and location.  

• Levels can differ greatly based on if the location was a "cook" (obviously more mitigation work) or a "smoke."
• Location can change cost as well based on how easily the area/material is to clean.

I think it comes down to having both a hygienist and a mitigation company that can be trusted.  I'm happy to give referrals based on our experience.  If you (or someone) has had a test done, I'd recommend getting several estimates for your buyer to help them move forward.  

We are currently working on contracting two contaminated houses for our next projects. I should say that I do not represent myself as an expert, but am writing this based on our experiences with methamphetamine contaminated properties in which we have been involved.  Please let me know if I can help in any way.