All Forum Posts by: Ruth Ann Morris

I am considering selling a property I own using seller financing. My thought was to require 10% to 20% down, charge between 6% and 7% interest, set the payments as if it was a thirty year loan but require a balloon payment of the remaining balance at the end of 10 years. I would appreciate thoughts on how I should structure it, ideas on what to watch out for and how I should word the contract to protect me should the buyer miss a payment, etc. If anyone has good or bad experiences with this type of sale, what was good about it, or what went wrong? The reason for the 10 year balloon is I figured that would be about the time I would be starting to sell off rental properties anyway.

For added information, the current tenants approached me to buy the place. It has a current market value of around $220k and I owe about $90k. Monthly rental income is $1450 and the current mortgage payment is $600 a month.

I am trying to set up a way to receive interest payments on loans we are making through a self directed IRA. I first tried Venmo, but that method was questionable because of how it was titled. I am looking at PayPal for business and thought that would work because it allowed me to set up the account in the name of the business and then asked who the representative was. That seemed like it was good until I looked at the profile for the account and it said I was the holder of the account for the business. Does that then make it so that I am “touching the money” and making the transactions become prohibited transactions? We are about to set up our first financing arrangement and the bank holding our business account does not us Zelle or Popmoney. An ACH transfer would cost both the business and the business paying back the loan money. What are our choices short of changing banks.... We already use 4 banks with 15 different accounts and don’t want to deal with another bank.

@George Evans I used Dimtriy and Sense Financial. They walked me through the whole process. They do a great job!

I am trying to set up a method for a real estate business I am loaning money to, to be able to pay the Self Directed IRA back. The bank the money is in does not use Zelle or Pop money. I need some method to set up the transfer account in the business name using the business EIN without it costing an arm and a leg. Any suggestions?

@Logan Hassinger, thank you for your info.  I will try that as well as expanding my equity line that I already have.  I am trying to build my portfolio of rental units so that within the next few years our cash flow is enough to fully retire on.  We are currently "retired" but are volunteering outside the country.  Our living expenses are covered outside the country by the organization we are volunteering for.  We have no living expenses in the states, just expenses for our rentals and some credit card debt.  

I would like 5% or less.  The property has been up and running as a rental since 2009.  I am not opposed to private money because at the moment even though I and my husband have excellent credit (FICO around 800) banks like WF say our debt to income ratio is too high.  

I own a duplex in SW Florida.  I owe about $15000 on an equity line.  The place is worth at least $100000 ( I was offered an all cash deal to sell it for that amount).  I am not interested in selling, but I would like to pull about $80000 out of the place ( pay off the equity line and net $65000) to use for additional properties.  I have read conflicting reports on how easy/hard that is to do as well as how much it could cost.  I have retirement income and own 3 duplexes and a single family home.  I have mortgages on all the other places ranging from 50% to 75% of value.  Rental income  is covering all expenses plus giving me some cash.  What is my best route to getting money out of the place to buy one or two more rental properties with minimal cost to me?

I took out an equity line on my house and bought two duplexes, one a foreclosure and the other a short sale. Just sold one after holding it for just over 5 years for more than twice what I paid. I rolled the proceeds and used conventional financing to purchase two more duplexes in a different market. The rental income is paying down the equity line and paying off the mortgages.

We set up the trust after the purchase.  Our lawyer transferred the deed.  We are currently trying to figure out what we need to do for the two places we just bought.  I need to talk to my lawyer to see what we need to do.  So, I don't have the answer for that one for you.

We own rental property in a revocable living trust.  We just sold one of the properties and it created no problems.  From contract to close was less than a month. We also have had no problems with insuring it.  I don't think deeding it to the trust is going to protect you from litigation though.