All Forum Posts by: Ned Carey

@Grant Jordan Ward well this is facinating. I have never run into this before. 

That said, my guess is in entirely depends on the specific property and the value of the mineral rights. You are going to have to do some reseach. No one here is going to have adirect answer. The first place i would look is the land records and see what the price was for the mineral rights. Then I would visit the property and see if there is any mining activity. 

@Marcus Welson I am not a CPA nor accountant but i think it is pretty clear as already said you can't deduct a loss of more than you Basis (cost) to acquire the asset. 

What I don't think anyone has addresed is, that you get a stepped up basis when you inherit a property If you inherited it recently you should have an insignificant gain. If you inherited it several decades ago then perhaps look at other tax saving strategies like a 1031 exchange. 

@Conrado Balicusto welcome to BP. Your right it is very competitive right now. Be patient. Rel estate investing is a long term game. There are alwys good deals to be had but don't rush just to do a deal. 

@Kenny Stevenson welcome to BP. Sounds like you have een interested for a long time. Once I got into it I realized I could have started much earlier. Good luck.

@Zachary Wurtz  The basic docs. for a real estate loan are a "promissory note" (often just called the NOTE) and a mortgage. The note is the document that spells out the terms of the  loan; like interest rate, how often pay, how long the term is, etc. The second doc is the Mortgage, or Deed of trust, in some states. This second document is what makes the property security for the loan. This second document is recorded in the land records so the world knows the property has a claim against it. 

A ttiel company will prepare lots of other documents to sign at closing and usually there will be an application and an appraisal. 

In your current situation, it could be covered by a contract of the terms of your agreement but creating an LLC as mentioned is also a good way to handle it. This is not a do it yourself kind of thing you really sould talk to an attorney. You may want to check out soe of the legal self help books by NOLO Press. I don't recomend you do it yourself but reading up on the law will help you better to work with and understand your attorney.

@Hunter Gibson wrote
         "I have bought deals with out any money out of my pocket that cash flow month with cap x. Sometimes when you have been doing something for so long you forget all of the possibilities that are available."

Congratulations Hunter that is awesome. But for those reading along**  Hunter's experience is NOT typical. I would be interested in hearing about your deals that you have done with no money down and how you structured them. 

       "A handful of lenders today and they said after closing they not only do not care if there is a 2nd" 

True but the issue is will they allow a second when you buy the property. Back o the original question assuming the 1st loan will allow a 2nd smaller local banks will be your best bet or a true Private Lender. In other words a friend family or associate that will lend to you because they know and trust you. Also I would ask at your local investor groups as they may have specific experinece with the local lenders. I don't know any banks that do this. 

** (when i respond it is not just for the original poster but others that learn from lurking)

@Gene May Creative financing is a big arena. it can be easier or it can make it more difficult. 

Owner financing for example could make it a lot easier. Generally I see a lot of people here wanting to do 100% financing and that temd to be very rare and hard to do. 

As @Nicholas L. says can you be more specific?

I strongly disagree with @Chris Seveney on this issue. For the 20+ years I have been investing a "private lender" was always a friend, family, or associate that is not a professional lender. They lend to you because they know, trust, and respect you.  Since they are not professionals they may skip some of the hoops any professional lender would want.  Your aunt Sara might be willing to loan to you at 5% becasue she is only getting 4% from her CD for example. They may lend on deals a professional lender would not. 

Hard money lenders are professional lenders. They loan on the "Hard Asset" more than on your personal finances. That is where the term Hard money comes from. 

To me there is a distinct difference between the two. 

@Don Taylor yes. Lenders who call themselves 'Private Lenders" who are actually professional lenders are a dime a dozen. Lots of them here on BP. 

A true "private Lender" as investors think of them are friends family or associates that lend to you becuase they know and trust you. Becasue they are not professional lenders, they may be willing to give favorable terms with fewr hoops to jump through. 

If you want to find them you have to always be on the lookout for them.  Talk about what you do or want to do. People are often intersted in real estate. When your friends ask "what's new" tell them about your real estate ventures.  "I've been looking at some incredible real estate deals. IF I only had the money."  Say that enough times and someone will ask "Well how much would you need?"

@Tiffany McKinney 22 years seems like a Llong time for an IRA investment. For an investment that long I iwould want a better return. Over that period you could do better in the stock market. Most IRA lending tends to be higher rates for much shorter periods.

A good question to ask yourself is; why don't they just get a loan from a more traditional lender? That is about the going rate for investors now. If they can't get a lonf from a traditional profesional lender then why are you lending to them without a premium for the risk?