All Forum Posts by: Mike Mitchell

If you're using a mac in your real estate business I have a few questions.

I have a property that doesn't quite fit investors' numbers but could be a great, quick sale below the appraised value. If you work in Albuquerque and are willing to help please pm me.

Mike,
I failed to mention that the house belongs to a friend of mine. I wouldn't touch such a slim deal otherwise. The house is in a market that has appreciated quite a bit in the last two years (that's the only reason there's any equity in it). I'll have the cost of documents, title insurance and marketing along with carrying the note at $1600/mo. The house is vacant.

An owner is willing to deed me his house. The recent appraisal is $236k, The balance on the note is $207k. I'm thinking of having him deed me the place, market it like crazy and get it sold. I'll do a title search. I've thought of putting it under contract and assigning it but then the owner will know what's left. Is assuming the deed the best strategy? It's in Albuquerque which is apparently a hot market at this time.

I'm assuming a note with zero down and purchase price equals the balance of the note. The note is held by a private investor who is willing to let me assume the note. What's the best way of handling this from a legal perspective? Also, I can do a warranty deed and title search, is there anything else that I'm leaving out to make this legit (I know about the filing)?

Thanks for the quick responses guys! To answer Ryan and Ohio realtor, no the seller has not approached the agent about a deed in lieu, and no we have not looked into the short sale idea. If I offer $107,000 which is the loan amount, what happens to the realtor's commission? Does seller have to sell his truck to pay the realtor? Again, thanks for everyone's help, you guys are the best :D

I'm trying to help a man who has a 6 month listing with an agent to sell his house. He's 3 months into the contract and can't make the $1600/month payments anymore. If he offered the bank his deed in lieu of foreclosure, would he violate the contract with the real estate agent (she will not release him even with the knowledge that he can't make the payments)? Does anyone know of a strategy to get my friend out of the contract?

I thought that direction made the most sense. It's not too bad to have that tax money earning some interest in our accounts as well. So far I haven't had trouble, but I want to know about any missed tax or insurance payments before anybody else.

For you guys who sell properties and hold the notes, what is your experience with escrowing for taxes and insurance? Is it better to take care of that and know that it's under control? Do some of you let people send the insurance binder to you and just check the tax site once a year to make sure that the buyer is paying? Thanks for any thoughts on this.

parrot,
I've purchased 2 properties in the past year within my self-directed ira. The markup on both was huge and they're both financed by me at 12% for 15 years. The interest alone on those 2 properties over the next 15 years is over $100,000.00. The markup was $40.000 between the two properties. All of that money is tax free, no 15% capital gains tax. What in the world is crappy about that? You might want to talk to some other guys who are flat making a killing using self directed IRA's before you pass up on such an incredible opportunity As close as I can tell, I saved $21,000 in taxes. I can live with that