All Forum Posts by: Scott Hawley

What do you all think of equity trust with regard to service, fees and checkbook control in an LLC? Scott

I have done something similar with no problem. The sdira funds went to escrow, not the bank. The sdira was recorded like a normal loan. I'm not sure what the bank is complaining about and suggest asking for more details. Scott

Adrian Chu can you pm me the 9.5% HML? I pay 2 points and 12% right now. Thanks!

Jay Hinrichs can you pm me the HML? Thanks!

Thanks for all the information everyone. I'm just starting my note research journey and love the sharing.

This is too vague of a question to have a clear answer. The answer could range from low risk to high risk.

If the borrower stops paying, depending on the collateral and local laws, you would have to foreclose or go to court. That takes time in which you are not being paid, incurs court/lawyer costs, and at the end hopefully the collateral is yours.

The note is less risky when you have good collateral, a low LTV, a borrower with good credit and income, etc.

-Scott

I've been reading a lot about notes but am still very new. I'm not sure if this is the going rate, but suspect it isn't. Why would some sell a brand new note for 87.5% UPB? It is like they just made the note and are taking a loss on it.

General Note Information

Lien Position1st Mortgage/Deed of Trust

Note Status Performing

Note Type Conventional

# of Payments Last 12 Months0

Paid To 01/01/2017

Loan Maturity 01/01/2046

Property Type Single Family Res

Original Balance $64,125.00

Principal Balance $64,125.00

Est. Market Value $81,590.00

Payment Amount $735.67

Note Rate 9.750%

Sold Rate 9.750%

Seller Comments: Newly originated note with full RMLO package from Texas Pride Lending included. Documents prepared by MLH Legal in Dallas, TX. This is a well written and well qualified note. Borrower's debt to income ration is UNDER 30%. Solid borrower, relocated from Ft Worth to the Tyler area at the request of his employer. Property is on a half acre located in the very desirable Whitehouse Schools District.

Who do you use as a loan servicer?

What are the best sites for finding notes for sale?

Hey @Jennifer King, who did you pick for your CPA? I'm in Bellevue and am looking for one now.

One option is to flip a home. I'm doing this now in my SDIRA with a partner. In this case, I'm invested in an LLC that owns the home being flipped. I have to admit, it is quite a pain, but then this particular flip is a pain. Even though it is a ROTH, taxes can still be due so look up UBIT taxes if you go this route.

I'm not 100% decided yet but am fairly sure that after this flip completes, my next investment for my SDIRA will be lending to someone else doing a flip. That will be much easier and when competing with hard money there is plenty of room to get a good return.