All Forum Posts by: Brian Gibbons

....I put peanuts in my envelope along with a postcard they can put on their fridge that says "you'd be nuts not to let us help" on one side and our information on the other. The nuts are a gimmick but it entices them to open the envelope because they wonder what the heck it is. Getting the homeowner to look at your contact is the biggest step. ......

Wow, Peanuts, bulging envelope, "What the hell is in that envelope???"

Originally posted by Benjamin Kelley:

I was wondering if you guys have come across any good books about "Sweat Equity". Actually doing the rehab yourself instead of contracting everything out.

Yes, it's called "How to Make $10/Hour Investing In Real Estate While Swinging a Hammer and Pushing a Paint Brush Around."

And I highly recommend you NOT read it, but instead get a copy and give it to your licensed contractor.

One of the better posts.

....sellers who are exempt still need to use the same prudent practices.

...

I am exploring, Bill the exemption for home sellers in that they do one seller financing in 12 months.

Category One Exception from the CFPB is for those individuals, trusts or estates who do just one seller carry back transaction a year on a property that has a dwelling that the buyer will use as your primary residence.

For these folks:

1. ) you can have a balloon in your note the buyer.

2.) you do not have to prove or document their ability to repay.

3.) the note must have a fixed interest rate for five years,

4). and at the end of five years, the interest rate can increase no more than two points per year with a cap of six points above whatever you started at.

You have to tie it to an index like a TBill or the prime rate in the beginning.

Say you had a low equity seller looking to sell on terms.

You get the seller involved with a lease option assignment.

You lease with an option from the seller.

You assign the deal to a tenant buyer, but have the tenant buyer see a RMLO, do a 1003 mortg app, have the RMLO write an opinion in their letterhead as to their ability to repay.

Now the Seller can create a trust or sign as an individual, as an LLC, Corp or Partnership is Category Two Exception from the CFPB.

I would love your opinion of this.

Brian

Chris, sorry your question got smoked, there are many ways to ensure privacy for owners of larger operations that can not be pierced in two hours, even by the justice department or intelligence agencies or even the IRS as not all agreements, assignments or deeds must be filed, they can sit in a lock box. Deeds are effective when made, not when they are filed. Someone else can be shown as an owner of record and that person can have other agreements to convey that interest upon certain events or upon demand. You may not know who is pulling the strings in the backroom. Don't be so easily bluffed.
Trying to hide in an LLC or small corporation isn't hard to pierce eventually, internal operating agreements can provide for others to pull stings and draw compensation. If you have adult children for example, they may be the owners, mom and dad can be in the backroom and if anything happens to the old folks, you have less issues as internal arrangements simply fade away. Nothing illegal about it.

As to the hiding out, I never hide from the public in business conducted, you need to be out there and responsible but it's different as to assets, especially in family or estate affairs as it's no ones business. :)