All Forum Posts by: John Underwood

I had this happen to me. I contacted the tax collector and they told me that bankruptcy does not protect against not paying taxes. I received a deed to a house where the lady was in bankruptcy protection. I now owned the house. The bank didn't redeem it because of the bankruptcy so that worked out to my advantage. I ended up giving the lady some money to help her get started in an apartment. Cash for keys. At this point she was just tired of the fight. I had been getting letters from her lawyer contridicting what the tax collector told me. In the end I had her sign a Quit Claim deed when I gave her the move out money. She got to start over and put this behind her and I got a pretty decent house for pennies on the dollar. I know have it as a Section 8 house and the government pays most of the rent every month like clockwork.

If there is no mortgage or other significant lines then it would be worthwhile to offer the owner $500 or so for his time to sign a Quit Claim deed to you. If there is a mortgage or other lines try to buy it at auction so that these get wiped out if the property is not redeemed.

Good luck.

Tenants or government (section 8) deposit rent directly into my Roth IRA, so not much to manage.

As a general rule, the Internal Revenue Code provides that a fiduciary is prohibited from furnishing services to the plan or its assets. IRC § 4975(c)(1)(C). However, there is a statutory exemption for services necessary for the . . . operation of the plan . IRC § 4975(d)(2).

If a fiduciary provides services to a plan without the receipt of compensation or other consideration . . . , the provision of such services does not, in and of itself constitute an act described in section 4975(c)(1)(E) or (F).

John

I bought a 3/1 central HVAC brick ranch house in a decent neighborhood from a wholesaler that is active in my Real Estate Club for a total of $19,500 plus closing costs with cash from my Roth IRA. It needed no repairs. Tenant was already in place. I had just flipped a house a few months prior and had cash in my account to invest.

It is a section 8 house getting $675/month that the government took over 100% of the rent shortly after my Roth purchased it. I should be able to get $775/mo after I raise the rent. I have another 3/1 section 8 house getting $775 so I know this is feasible.

I have 4 houses in my Roth now and if I can find another motivated seller to sell another 3/1 house for 20K that needs little to no repairs then I can buy a new house for cash about every 12 months. In a few years I'll be able to buy another property every 6 months and so on.

John Underwood

Greenville, SC