All Forum Posts by: Pari Thiagasundaram

Anyone done a wrap around mortgage in WI ? I have a property that i hold free and clear, but wanted to cash out. So doing a 30 year fixed now. In the meantime, i am advertising this property for seller financing so i can hold the note and not the property.

Anyone done a wrap around in the state of WI? What are the steps involved and how to go about this ?

Any help is greatly appreciated.

For 48K, if you get a minimum rent of 1% of purchase price, you are ok. 2% good. 3% YOU ROCK !!!.

Look for rentals in that area. I would compare data from craigslist, rentometer, zilpy, zillow and trulia. Get the Average from all the above sites.

With 20% down, Insurance, property tax and 10% for property management, are you getting atleast a minimum of $100. Set aside cash for repairs.

@Wayne Brooks The contractor purchased windows for someone else and it was *NOT* for my property. I havent been through anything like this. How would i find out if there was a lien placed against my property ?

I hope i am suppose to get a letter about it, isnt that correct? Or can it be placed without my knowledge ? 

@Bob E. @Dawn Anastasi

More update on this. The contractor ordered some windows with a local distributor and it turned out that it was a historical home and those windows cannot be installed. When the contractor tried to return it to the distributor, they wouldnt take it back. They went to court and the contractor lost the case. As we owe money to this contractor, the lawyer sent the docs to us as GARNISHEE.

Now the contractor agreed to settle this with the other lawyer and retract our names. (I am assuming it will happen next week).

What a way to start the weekend !

Im not giving any tax advice here. With all standard disclaimers, you might want to read about LLC taxed as S corporation by filing Form 2553. Find out what the tax rates are for both federal and your state.

Now compare that with just an LLC with pass through taxation. On excel sheet for the first column, write down "LLC taxed with filing Form 2253". Next column "without Form 2253".

First row should be Income earned. (As an example assume you make 100K next year). Calculate the tax savings for the first column !!!!!!!!.

Again, it just depends on the individual on how they want to form the entity. Even if there is an opportunity to commingle the funds, I would personally want to stay away from that. (Thats just me playing it safe from an IRS perspective).

The minimum investment per IRA to do something like this is $100. To keep it simple, you purchase a note (lets say for simplicity sake) at $100K.

https://www.dropbox.com/s/xnezovfk76mqwts/note-par...

Using the above partial calculator, for C3 put 100K, for 180 months at 11% interest rate. (Lets assume this is the note that you had purchased). 

Lets say you find an investor who can invest $99,900 and you agree to give him an interest rate of 8%. If you look at the excel sheet, he will be paid off in 133 months. 134th payment until 180 is all yours.

Click the "Graph" tab to look at the amortization schedule. 

Now, if the buyer pays off early or he refinances the loan at month # 72. (Just an assumption here). The pay off amount would be little less than ~78K. Your investor gets paid ~60K and you get ~18K. 

An investment of $100, got you approx 18K.

To add to this, it looks like i am the GARNISHEE.

Didn't want to get into the details much yet as my realtor just got this notice for garnishment. Long story short, paid the contractor 2 draws and now he is suing me for non-payment.  

Wondering if someone can recommend me a lawyer in milwaukee and how much the fees usually are for something like this?

@Account Closed Welcome to BP !. 

Have you attended any training or know how to do the due diligence ?. Ping me offline and we can may be meet for a coffee or a drink. I would go for the less expensive one to start with (Blue moon is cheaper than a coffee at Peet's)  :)

Anyone bought NPN from Scott Carson ? He said his notes are for season investors and his mastermind group only at this time. Costs about $8997 to get into it.

Any thoughts on this ?