All Forum Posts by: Steve Burt

@Dave Van Horn Apologies for bumping such and old post but could you talk more about or provide any resources about utilizing captive insurance to offset the taxes?

They explicitly said they didnt do a credit report. I asked for bank statements afterward

Thanks for the insight. I did get the 1003 form, but all of the useful information regarding assets and debts wasn't filled out. This would make me believe an MLO was not involved. That is great advice on the title and liens and I plan to do so

I wish I could have seen the webinar, I do not think this note is  owner occupied actually. How would that change your reply?

@Chris Seveney

I had a question for the group. I am reviewing a note originated within the past 6 months so obviously there is little payment history to go off of. Would anyone have advice on how to diligence the note? I was wondering if the seller would make anything available like their DTI ratio at the time of application or something? One thing I thought to try was trying to find the previous home of the borrower and check to see if it had been foreclosed, but I did not have any luck searching adjacent counties. Hoping to get the thoughts of more experienced folks than I, the note is serviced with a high quality servicer which does give me some confidence

The business is the owner of the land

In Dallas Texas, what happens after a land with commercial building attached is foreclosed on and auctioned off? The foreclosure was for an unpaid line of credit not taxes or anything? How soon would the tenant have to exit and is there anything the tenant could do to stop it or drag it out? What happens to all the inventory and such in the building?

Most info I find is for residential land and those tenants. Not sure how things change for commercial

Thanks, I had no idea FCI was still in business. I thought they shut everything down. Sorry to hear about your experience with SN and Del Toro but thanks for sharing your experience. I appreciate you sharing the market insights

@Logan Hassinger Not discouraging at all, it is great to have a more realistic view of the P&L and diligence costs.

@Logan Hassinger That is interesting. I was thinking about building to a 250k portfolio or so over the next 4 years. Was your number based on trying to create a diversified portfolio of 15ish notes at 15K per,  or was it based around having a smaller portfolio of 10ish notes but then a capital buffer to cover costs like legal fees? Just trying to get a feel of sources and uses in your mind.

Hi @Jamie Bateman thanks for the feedback. I have planned to self fund all capital by adjusting my portfolio allocation and my portfolio would also fund future operations. 

I will be honest I have not devoted a ton of time to systems and asset management. My thought was to track payments via excel and use google drive to track all critical documents and store records of interactions with the borrower or support personnel. There was a thread a few months back on here about this, seemed like a lot of people just used physical files as well. I hope I caught your meaning.

I would be targeting 1sts only and mortgages until I am prepared to branch out my knowledge learning the nuances of CFDs.

I think I will start with a single member LLC, though I do believe that some pros use a different LLC in every state.

It seems like pros use multiple servicers. I was thinking of starting with SN Servicing or Del Toro. Del Toro seems very open about costs but I will be honest in saying I do not understand what everything on their menu of services actually is.

The owner occupied nugget was gleaned from a @Dion DePaoli post that I have since lost track of. I believe his argument was if the property was a rental and had equity, then the performing note was less likely to default because there would be multiple sources of revenue. In addition the owner would want to keep control of an asset that earned them income.