All Forum Posts by: Ned Carey

         "Yes as @Russell Brazil says no liens bought in 2024 would be foreclosed on yet."

I should have added that it takes about 1-2 years to complete a foreclosure once you have bought a lien. 

 @Kareem Aaron   regarding Baltimore, obviously the City sale is over. It was more competitive than ever. Many of the liens we won we bid over 100% of the assessed value. Interest rates on anything decent were bid down to 6% or less, often under 2%.

@James McGovern I'll add some to  what @Jonathan Greene said above.

They know the market inside and out. They know the supply and demand and what a fair price is.

They fill out forms completely. It amazes me how an agent can send back a contract without items initialed where they need to be initialed. 

They handle a multitude of details that make it easy for the seller (and buyer). I have worked with many agents that I felt like I had to do their job. There can be a LOT of back and forth with lenders, inspectors, appraisers,  and title companies that the agent takes care of. 

I can do it all myself, but I don't want to. It is a terrible use of my time as an investor. 

A GOOD agent is worth every penny they are paid. There are many good agents here. You can tell they know their stuff from their posts.  person like @Russell Brazil is a good example.

@Kareem Aaron Yes as @Russell Brazil says no liens bought in 2024 would be foreclosed on yet.

One reason people bid the interest rate down is they are attorneys and they can earn legal fees on the liens. A $750 legal fee on a $750 lien is a 100% return. That is not exactly how the number work out but you get the idea. 

As Russel says today most bidders are bidding to get the property. Due to the market going way up over the last several years, even very high bids made money on the foreclosed properties. 

The problem is at today's high bids if the market doesn't go up a lot of people could lose money. The properties they foreclose on may not be worth what they bid. 

For what it is worth one of my associates was one of the top bidders and he thought the auction was LESS competitive than in the past. He wanted to lower his bids after the first batch but PG county does not allow that. 

Yes properties do get foreclosed on in PG county, however we have mostly gotten lots or condos. 

@Nathan Gesner I'm just seeing this now. I am so sorry. You and your wife will be in my prayers. 

You have given so much to the BP community. I also know the BP community appreciates it and their thoughts and prayers for your wife will somehow reach her and help her through this. 

@Mike St. Jean There is nothing wrong with a Nevada or Wyoming LLC setup, but the need and advantages are way oversold. Most if not all states require you to register your out of state company anyway so many of the advantages go away with the in state registration.

@Patrick Roberts gives an example of why i said "Buying in your name and then moving it to an LLC is generally not a very good idea." Whether this is a potential risk would depend on the state and particular case law.

Thank you @Michael Plaks, @Dmitriy Fomichenko, @Dylan Brown for correcting my post. 

@Art Webb Wrote    "I did receive EIN for SDIRA with no instructions."

IF the W9 is to show what is the tax ID is for the SDIRA then, then the number they gave you above seems the answer. However what is the context? Who is asking for the W-9?  When you asked "how to fill out my W9 for my SDIRA" I took that to mean the custodian was asking as you were setting up the account. 

If someone your SDIRA is doing business with is requesting the information then they want the SDIRA's Tax ID number.

Hhopefully all is clear to you now. 

@Ian Russell yes a lower interest rate will make the property more desirable and probably easier to sell. However there can be other advantages to the buyer other than a low interest rate. 

You may offer 100% financing or at least a higher loan to value than the buyer can otherwise get. You might be able to finance someone who can't qualify for a more traditional loan. In these cases you may not need to offer a lower rate.

Keep in mind that an investor buying vs a homeowner will be paying higher rates anyway so your rate may not need to be as low as a homeowner can get for someone who is buying strictly for investment purposes. 

Unless you are priced high or have a tough to sell property I don't think you need to be as low as 5.5% to make owner financing a benefit for the buyer. 

@Mike St. Jean The issue is not just the type of deed. Your title insurance goes away if you transfer it without a new title search and title policy. 

Due on sale is a possible issue. Get good local legal advice on that. But don't listen to the national lawyer gurus. You've already been sold a bill of goods by setting up a Wyoming LLC

Buying in your name and then moving it to an LLC is generally not a very good idea.

@Art Webb I am not a CPA but you are the beneficial owner of the IRA. If there is ever a tax audit it falls back to you. So it seems appropriate that you would use your SS# for setting up the SDIRA. The LLC owned by the IRA can get it's own EIN number. It is easy to apply online. However since the LLC is a single member with you as Benefield owner then W_( forms say to use the owner of the LLCs tax ID number. Again that is you.

Who says not to use your own SS# and why? I think that is suspect advice by paranoid people.  Since this is for your SDIRA why don't you ask the custodian what is expected?

@Michael Plaks can you  help?

@Daniel Kokodoko it sounds like you've got some experience and boots on the ground you can trust. Just recognize that being out of state increases your risk. 

The up front equity is a good deal, but why not just sell now, instead of taking losses for potentially years?