All Forum Posts by: Brian Gibbons

@Kevin Yeats nice discussion.

BP I enjoy this thread re: permanent life insurance.

I would recommend folks read Investopedia

https://www.investopedia.com/terms/u/universallife...

https://www.investopedia.com/terms/t/traditionalwh...

buy term and invest the difference vs. permanent http://www.investmentnews.com/article/20150728/BLO...

Guardian Life has a IPF rider on their WL policy https://www.guardianlife.com/news/guardian-introdu...

"The IPF is an innovative rider that individuals and their financial advisors have been looking for during this low interest rate environment. It offers a unique opportunity for index-linked upside potential, while still supporting the robust guarantees that policyholders have come to expect with Whole Life. And best of all, clients can change their IPF allocations as their needs change, so they are never locked in"

Wealthy people have bought permanent life insurance for over 150 years for many reasons.

Here are 12:

The perfect retirement plan - 12 features

1. The plan should allow for tax-deferred growth

2. The plan should provide for income tax free withdrawls

3. The plan should earn competitive returns as much as possible but still have guarantees.

4. The plan should allow any taxpayer to put in as much money as they want.

5. The plan should provide a taxpayer to use the account as a collateral for a loan.

6. The plan should protect against market losses.

7. The plan should assure access to loans should the taxpayer need money before age 59 1/2.

8. The plan should allow for these loans to be paid at the taxpayers discretion, at any rate of repayment or even not paying them back at all.

9. The plan should be protected from creditors.

10. The plan should eliminate early withdrawal penalties, late withdrawal penalties, and excess contribution penalties —- there just shouldn’t be any penalties at all.

11. The government should continue the contributions to the plan at the same level the taxpayer was contributing if the taxpayers should become disabled and cannot continue to put money into the plan.

12. The government should accelerate the expected retirement account balance to the taxpayers family if the taxpayer dies prior to retirement

If you compare these characteristics of an ideal plan and compare it with a Roth IRA,

you can’t do number four, put in as much money as you want

you can’t do number five, use it as collateral for a loan

you get to number six, protect from market losses (see rider above)

you can’t do number seven, assure access to loans before 59 1/2

you can’t do number eight, allow for loans to be paid at the taxpayers discretion or not at all

you can’t do number nine, be protected from creditors

you can’t do number 10, eliminate early withdrawal penalties, late withdrawal penalties, and excess contribution penalties

you can’t do number 11, making the government continue the contributions to plan at the same level the taxpayer was contributing if the taxpayers should become disabled and cannot continue to put money into the plan

lastly, you cannot do number 12, the government should accelerate the expected retirement account balance to the taxpayers family if the taxpayer dies prior to retirement

Permanent life insurance is much better than a Roth IRA for these reasons.

Vince

 Contact @John Jackson

I trained him in Lease option assignments, in 2002

He’s the best in Texas.

Learn Creative Real Estate Investing!

Wholesaling is important, but also learning other strategies as such as

Sub2, Lease Options, Lease Purchase, Wraps AITDs, Installment Sales, Land Contracts, Contrct for Deeds, TICs, Equity Shares, and more.

Here is a video on Creative Real Estate Strategies:

http://reiskillscoach.com/learn-creative-financing...

Many people are worried about Dodd Frank. Here is an excerpt from National Law Review:

If the seller only finances one property in a year and is a natural person, an estate or a trust, the seller does not have to determine and document the borrower’s ability to pay, although the loan requirements remain the same. If the seller finances more than three properties, the mortgage originator provisions apply, as well as the specific limitations on the loan. see article link

https://www.natlawreview.com/article/seller-financ...

So doing creative deals and doing them right is important.

Asking the right questions to home sellers is a learned skill.

Here are questions that assist you in getting the seller to think creatively.

Asking About The Seller And Their Property:
Can you tell me a little bit about your home? (# of bedrooms, baths, size etc.)
What do you like most about the home?
What do you like the least?
Are there any repairs needed?
What is your sales price and how did you arrive at it?
What do you think your house would appraise for in excellent condition?
What do you think your property could rent for?
Is your property listed with a real estate agent?
If you don’t mind me asking, why are you selling?

Asking About The Existing Financing:
Do you own the house free and clear?
Do you know if your mortgage loan assumable?
Would you sell the house for what you owe?
If not, how much are you looking to get above what you owe? (Subtract that from sales price to get loan balance.)
How much are the monthly payment on the mortgage?
Are the payments current?

What Kind Of Deal Can You Get:
If I paid you all cash and closed quickly, what is the least you could take?
(Follow-up by asking if that is truly the least they would take.)
Will you consider leasing the property to me with an option to buy if I guarantee the mortgage payments and maintenance?
Do you have a problem with someone living in the property until I get it sold?
Would you consider optioning the property to me, if there is absolutely no risk or cost to you?

These take some practice.

Here is a video that discusses the benefits of Terms Deals vs just Wholesaling.

http://reiskillscoach.com/cash-vs-terms-deals/

And here is a video that discusses the differences between Lease Option Assignments (aka cooperative assignments or wholesaling lease options) vs Wholesaling vs Rehabbing vs Sub2.

http://reiskillscoach.com/lease-options-assignment...

So what I am proposing is you and I talk about 1 on 1 coaching.

You learn:

• Create a Sub2 offer
• Create a Lease Purchase for Seller offer
• Create a Rent to Own for Tenant Offer
• Create a ROFR (right of first refusal)
• Create a Land Contract Offer
• Create an Installment Sale Offer
• Create a Wrap Around Mortgage Offer
• Create an All Inclusive Trust Deed Offer
• Create a Land Contract Offer
• Create a Wholesaling Contract for Cash Buyer
• Create a Tenants in Common Offer (TIC)
• Create a Property Trust
• Create a JV Agreement Offer
• Create a Partnership Offer
• Create a Letter of Intent to Purchase

Please let me know if you are interested in learning Creative Real Estate!

Best Wishes,

Brian

You can have your attorney look over any document you wantattorneys don’t know the agency laws as far as acting as agent

I wish more licensed agents would discuss how lease option works for Sellers and then have a listing that offers a lease option to a buyer and earns 3% for a commission

Thanks Steve. I coach LOAs, VA md MD and DC I would get my RE license and list the house for a lease option sale with a 3 percent fee.

@Micah List

To buy on land contract or contract for deed, then refi in 3 to 5 years is not a terrible idea.

To buy with an FHA loan is easiest for Owner Occupied.

If you go the creative financing route, use a loan servicing company (aka note servicing).  See

https://www.google.com/search?q=note+servicing&ie=...

The way to protect yourself as a buyer is have the loan servicing co take your PITI payment and pay the PI to the bank, the T and I get impound accounts. The seller gets no money directly.

The seller owner gets a year end tax statement from the the servicing co.

Another protection to consider is a property trust.  Ideally you want the property out of the personal estate and into a trust.

To make the seller feel safe you can prepare a quit claim deed held in escrow in case you as a buyer default.

@Mahan Shahverdi

Example

say you have appraisal at $100,000

Rent comps $650 per mo

Bank pmt PITI $700 per mo bank insurance taxes)

Mortgage bal $79,000

3 mo behind

Amount to reinstate and get caught up $2000

 Clean up $500

You buy subject to the existing loan, get the deed

Use a title holding trust

Pay the bank directly, using a note serving company

Explain to seller about due on sale clause, all bank docs coming to you

Insurance policy adds you as additional payee 

You will send quarterly statements to former owner proving PITI is paid on time

Rent out for buy and hold

I thought I would give about 20 free tips to the Pro BP community regarding negotiating terms deals.

 The strategies include subject to, lease options, lease purchase, wraparound mortgage purchases, TICs, Shared Equity, and a few others .

TIP  1 Be a reluctant Buyer.  Do not be an Eagar buyer, eager to get the deal.

there is language that you can use that will help you be a reluctant buyer.

For instance

“I don’t know if this would work for you, and  I would have to check it over with my business partner but ...what if I could help you with the debt service payments, your mortgage payments over the next 36 or 48 months, I’m not sure...with that be a fit for you or maybe not?”

Its a big mistake NOT to be a Reluctant Buyer!

Experienced negotiators may recognize “appeal to a higher authority” above :)

@Leather Nix

There are folks hiring a RMLO Reg Mortg Loan Originator, to underwrite the OF Owner Financing buyer to CONFORM to the ATR Ability to Repay Rules of Dodd Frank, and enforced by the CFPB Consumer Fin Protection Bureau. 

Interesting what is happening in Wash about the CFPB right now.  Elizabeth Warren MA is fighting a tough fight about who runs the CFPB, and Pres Trump is calling her "Pocohantas" because of Indian heritage.

I suspect as @Shiloh Lundahl stated there are changes afoot.

See cnbc

https://www.bing.com/search?q=cnbc+cfpb&form=EDGNTC&qs=PF&cvid=153a460fdf4944e8aa7c445c4f50f268&cc=US&setlang=en-US

check on google "bond for deed Louisiana"

@Neil Robertson