All Forum Posts by: Justin Robert

@John Cornelius There is a lot of strong opinions on this one... Just curious, what would it cost to implement this plan? Materials + Labor? 

Yes I have done a few, by no means a pro but the servicing has been well worth it.  

I use a SD IRA currently.

@John Morgan Call a CPA. 

@Anthony Smoke Congrats! As you mentioned, the BRRR strategy may not be ideal in a SOLO 401K. Still a great way to learn and its more fulfilling to drive by your retirement vs. watching the stock market.

@John Morgan Yes, they can fetch a premium. If you decide to do one the cost of a note service is well worth the cost in my opinion. Specifically, August REI in Garland does it for $35 a month per loan that includes online account access, escrow, payment collections / disbursements and tax documents.

@Aram V. Are you able to actually view their credit report(s)? I have seen many sub 600 scores that were more "limited" then "negative". Say 1-2 credit cards with little or no balance and a $400 collection or something that. If they are habitual renters and don't have a car payment they are constantly paying, its pretty easy to have a score like that. I have also seen a 550 with multiple repossessions so yeah... Overall, they sound fairly stable. $5K in a savings account is ALOT for a 554 / 715 combo. Best of luck! 

@Patrick Zane McLure Sounds like CF could be an issue on 15 yr. loan. Maybe a 30 yr. loan with intent to pay on 15 would make sense to him. Best of luck!

@Patrick Zane McLure There are some missing details for most to give a specific answer, but in general sounds like it *could* be a good opportunity! 

A 60/40 split seems reasonable if his extra value is the land he brings to the table and the ability to get the deal done. 

You get 40% ownership for $0? Infinite cash flow? 

I think the main issue(s) could be; 1. Going into business with family. 2. Does it actually cash flow on a 15 year note? 3. If if it doesn't, how do your cover shortages? 4. If he dies, who gets the 60%? (more a question that an inherent issue)

@Eric Drum I don't fully get the first question either. To clarify; in the scenario the owner owes $70K and you want to buy the property and they want Market Value of $300K? So the question becomes can you buy the property and they can sell it to you with a $300K lien subject to the first $70K lien? You owe $300K, they owe $70K to fist lien-holder. Yes that can be done, consult a Real Estate attorney. 

As far as taxes they will pay those regardless. The taxes are paid over time as a portion of principal / interest are repaid.