All Forum Posts by: Mat Sorensen
Mat Sorensen has started 2 posts and replied 24 times.
Post: what legal docs should be required when lending private money
- Attorney
- Phoenix, AZ
- Posts 32
- Votes 23
Ramon, you should consider getting a promissory note and a mortgage or deed of trust (depending on the state) securing the note against the flip property. The IRA would be the lender/holder on the note and the beneficiary or mortgagee on deed of trust or mortgage. Make sure you have a title company record the deed of trust or mortgage and that you know what lien position you are in before funds are disbursed to the other person. You usually handle that with an Instruction Letter to the title/escrow company where you give conditions upon when to disburse funds.
Post: Lease Agreement Signature Differs From Tenant
- Attorney
- Phoenix, AZ
- Posts 32
- Votes 23
Sean, the tenant on the lease should be the LLC, and the person signing for the LLC (tenant) would sign in their capacity (e.g. Manager if a manager managed LLC or Member if a member managed LLC). If the LLC is listed as the party at the beginning of the contract and there is just a blank spot to sign at the end, then the manager(s) or member(s) would sign at the end and put their capacity next to their typed out name.
e.g.
XYZ Investments, LLC ("Tenant")
________________________
By: Mat Sorensen
Its Manager
Post: Horror Stories: Investment Documents
- Attorney
- Phoenix, AZ
- Posts 32
- Votes 23
Is your lawyer reviewing your investment documents? If not, you might be putting yourself or your investments at risk.
Help other BP members avoid a similar crisis: Share some of your investment document horror stories below!
Post: Using Roth IRA funds for start up
- Attorney
- Phoenix, AZ
- Posts 32
- Votes 23
Christine,
I personally invest my retirement account in real estate and have helped over a thousand clients do the same. You can absolutely use your Roth IRA to own real estate, however, you need to learn the rules of the road first as their are two places you can make mistakes (prohibited transactions and UBIT). Why buy mutual funds you can't even understand when you can invest in something you know!? The first step is understanding the rules of and then getting the Roth IRA to a self-directed IRA custodian who will allow your Roth IRA to buy real estate. You may have the Roth IRA own an LLC 100% and then the LLC owns the multi-family property and you may have partners. There are many options and variations.