All Forum Posts by: Alain Perez-Majul

Hmmm I think you lost me. If you're the one selling the property, and it's owned free-and-clear, what prevents you from doing either? You'd always have both options, would you not (ie. in what scenario are you "not approved" for selling on mortgage/note and you being your own bank)? The financing terms, depending on what you and your buyer agree to, would function the same way regardless of which of the two you pick, right? So why would one "run the numbers for both," as the numbers are the same? Additionally, on the tax side, your income from principal and interest from the note would be treated the same as well, regardless of the structure; and legally, in the event of a default, it appears that both would require a foreclosure to remove the non-paying buyer. 

Again, the above is for a free-and-clear property that you want to sell on seller financed terms and carry the loan. If you're in this position, I still don't see what pros and cons you're weighing between LC and note/mortgage. I suppose other than the preference of keeping the deed in your name vs not, and I having heard that selling a note/mortgage deal to another investor is "cleaner" and more desirable than a land contract (still don't get why)....

@Joe Villeneuve Sorry, I obviously wasn't clear enough. I was referring to being the SELLER on it, not the buyer, and also assuming you own a property free and clear, so that you actually have the ability to seller fi. Thus, if you're selling to a buyer seller financed, what are pros/cons in choosing LC vs note/mortgage, as the financing terms work the same regardless which route you go?

Hey guys! Was wondering what the main difference is between a land contract and note/mortgage sale (benefits, negatives). When it comes to the actual financing terms (ie. length of loan, interest percentage, etc), both a land contract or note/mortgage can accomplish the same thing. With a LC, deed stays in seller's name until note is paid off, in note/mortgage, dead transfers to buyer and lien is placed on the property via the mortgage. If the the buyer were to default, with note/mortgage you would foreclose on them, and at least in IN, to my understanding, one would have to go through the same process with a land contract buyer (as opposed to just evicting them), mainly due to large interest acquired by the buyer during the time they paid down the note. So in this regard, they're very similar. 

So for those with experience, what would be the reason you would choose one structure over the other? I've heard note/mortgages are "cleaner," and that it is also easier on the back end to sell the note to note buyers if it's structured as a note/mortgage, as they prefer it (I am ignorant as to why). What are the main pros/cons to weigh when considering either route? Are there benefits to each in different scenarios, and thus they should be considered on a case-by-case basis?

@Joe Villeneuve any thoughts?? I'm sure you're a knowledge bank on this one :P

My understanding is that TLO is the creme de la creme. However, access to is incredibly hard to get, as others have shared.

If you're looking to skip trace in bulk (not just one offs), I know of some wholesalers using https://proleadzone.com/pricing-packages/. Pricing is significantly better than most others out there. I'd suggest reaching out and submitting a sample skip trace (ie. send them 10 names/addresses/whatever and ask that they skip trace them and provide you deliverables to see what to expect).

Hope this helps!

Hey ya'll!

Wanted to see if I could get some quick advice. I'm looking to change the name of my business due to a change of business direction and branding, and was curious if anyone has ran across this before or has any helpful input. As it stands, it is taxed as an S-Corp, so starting a new LLC would complicate things on the tax side and trigger additional unnecessary expenses. At this point, I'm considering either going the DBA route or formally changing the LLC name through a business amendment; the latter seems the cleanest, not very difficult, and I wouldn't have many too many additional subsequent changes (i.e. online domain names, marketing materials, etc) to make.

If anyone has some pointers, knows of other routes I should consider, or has a different opinion overall of the above stance, I'm all ears!

Thanks for the help in advance!

Cheers

Harvey doesn't manage for me, but I've worked with him professionally before, and he's a pleasure to work with.

@David M. This is great! Good to know it works like that, as I didn't know before. I think the cleanest way will be to open up a new LLC in that state and get a respective mailing address to go along with it. Thanks for the guidance.

@Tanvir Sattar Thanks, man! Appreciate the feedback. Yes, I agree entirely with you in regards to rentals (I do that with my own), but am looking at it more from the active business of wholesaling, not the passive business of buy and hold.

Either way, getting info about costs and the like will be crucial! AND I'll take the luck :P

Hey guys! Of course, at the end of the day this is best ran by a lawyer, but I'm thinking it's not that complicated of a question and wanted to get some feedback from those who have either gone through this or are simply knowledgeable on the subject. 

I'm considering investing/wholesaling in a market outside of my own state. Is it important to open up an LLC in that new state, or does it matter all that much? Can I simply continue running operations through an already-existing LLC within my state? What should I consider and keep in mind (legal or tax-wise)?

Any feedback helps! Sorry if it's a dumb question :P

Cheers

Thanks @Jynell Berkshire! Appreciate the heads up on this and keeping us in the loop :)