All Forum Posts by: Account Closed

Disqualified parties:
-Any entity (corporation, estate, partnership) that has a combined ownership greater than 50% by a combination of all disqualified parties.

Can someone loan their SDI to an LLC their son owns 45% of? What would IRS think about this?

If I were to purchase a property all cash, what are my chances of being able to refi/cash out for other investments if I don't have credit or steady income? Maybe the better question would be - how to do it.

Same question goes to Jon with Sterling.

I appreciate all the info.

Jon,
Thanks for the info. I guess my question is, how would I go about structuring it if we both agree on deferred payments? He doesn't really care about monthly payments, upon the sale/refi of the property, he wants to make percentage on the money.
He is rolling over a portion of his IRA to Guidant Financial for the purpose of being able to fund my real estate deals. So we are not exactly sure how to structure it, if there are stipulations on how the IRA will realize profts, etc. Does it HAVE to be in the form of monthly payments, or can we set it up as a balloon upon sale/refi?

I am looking into purchasing an REO, rehabbing it, and holding on to it as rental for a year or two and then selling. I plan on using private money for the deal, in this case a good friend of mine's self directed roth ira.
My question is how I go about structuring the loan? Ideally, I would like to borrow the purchase, rehab, and closing costs. Rent the property out and then cash out my investor in two years through a refi or sale. From my understaning, they don't really care about collecting the monthly income but would like to make a good return on their money upon sale/refi.
Can this be done with self directeds?

so there are no "subject-to" clauses that can be implemented?

What happens if you can't find a retail buyer in time for the auction? Will you have to take on the property yourself?

I was perusing the foreclosure list today & I came across the perfect property: 3 units, 2/1, avg. rental for the area's $800/mo, purchased '99 for $53 k. The house is going to be auctioned Aug 4. I know it's cutting it a little close but something told me to pursue this property. We also knew a buyer willing to pay cash for the perfect multi fam.

I couldn't find a phone number for the owner so I urged my partner to to come with me to the house. Long story short, the man and his two grown sons had no idea the house was being foreclosed on. This being our first time even contacting a seller, I was uneasy with being the one to bring the bad news. I was expecting them to either say: we have it taken care of or it hasn't been settled yet. Know the feeling when someone just wants you to go? That's how we felt. He asked for our number so I gave him my business card. I wish I could've told him the sooner he called, the sooner we could help. I wanted to tell him there were other ways besides selling since it obviously never crossed their minds. But I guess this is how we're supposed to learn right? Through experience.

I'm under the impression the wife handles the finances and failed to inform her husband. For their sake, I hope he has access to the funds to pay his mortgage current or we at least gave him time to try to find a way. Obviously for our sake, I hope he calls.

What would you guys do? Cross your fingers and hope he calls or would you pay another visit tomorrow? I'm sure this must be a tough time because a bomb was just dropped on them by complete strangers. I don't want to seem pushy.

Thanks Mike! What type of questions can I ask them in order to find out whether or not it's worth it? I guess you can say I'm afraid of offending them.