All Forum Posts by: Brandon Diaz

looking up info

Yeah I can see that thought running in your mind. One way to be safe, offer a little less than what you were willing to offer for the monthly payment if it does go up. If you are comfortable were you are at... than dont worry about it. I would do it just in case because the numbers you are giving are dramatic differences. If it was just a little bit... no worries but $2,000 makes your monthly expenses go up by $167/month!!!!!

Another caution area is that association because it is a condo. Associations is one major reason I either sell my property wholesale or retail. I have that luxury where I live... Tennessee. Not everyone does though. Make sure you are in the clear with leasing out the condo. 

The good news is... I think you are going at it the right way with a lease option though. It doesnt transfer the deed so no flags will be raised to trigger property taxes getting higher. Now, the assessor may catch on after a while that the taxes are to low... Thats why you buy it right ahead of time just in case they adjust it. 

As far as recording the lease option at the court house. You can. I dont unless I feel shaky about the seller. For the most part, I just hold on to the documents myself. If I believe that the seller is trying to pull a fast one on me... Ill go straight to the courthouse and record the documents so I will pop up on a title search. Have the lease option documents notarized really helps with this process by the way. 

Not recording is the way to go though if everything is smooth. Lets say you give the property back to the seller. If you recorded the Lease Option look who will have to sign some documents later when they go to try and sell the property. Lets say they cannot find you... Than the seller cannot convey clear title and they will have to go through a suit to quit the title just to get you off title (Chances are they wont even know how to do that) In this case, you are causing a problem without meaning to. 

I hope this helps

Success in creative financing comes from being a good communicator. I have done many many many creative financing deals from sub-2s, deed of trusts, land trust, lease options, and the list goes on. 

0% interest loans I have done. Also, the complete opposite of that and have done interest only loans.

Now, all of that can be overwhelming, because there is a lot to learn. Make sure you study daily these different ways to purchase real estate. Eventually, you will land one, and then another, and then another, and next thing you know you are the next big guru. lol

If you want to catch a 0% interest loan. Here is "A" way. Notice, I did not say "THE" way. 

If you are making a cash offer and the sellers think you are to low and they will not go any further lower than the price they are at, but they are serious about selling. Tell them "The only way I can do that price is if you finance it to me" If they ask, "what does that look like?" 

*Grab calculator 

Take what you want your payment to be... lets say you want your payment to be $400/month (Keep in mind you will be taking over taxes and insurance possibly- I am just giving you an example). Lets say that the seller wont go lower than $50,000 (random numbers so you can understand) 

Take 50,000/400= 125months 

I would say "I can make you payments of $400 for the next 125 months to pay off the $50,000"

If they say "yes" than you place that into your purchase and sales agreement right into the price section as such. Price:$50,000 with monthly payments of $400/month to be paid for 125 months. Your title company should be able to process the deed of trust or mortgage.

This is a 0% interest loan that you just nailed. 

If they say "no" that is to long. I work balloon payments next (Next discussion... one step at a time here) or other types of offers to figure out something. 

But for the most part, that is the main jist on how to get a 0% interest loan.

Hope this helps

Welcome to Biggerpockets. 

I know I speak for the rest of the community when I say, WE WANT YOU TO SUCCEED. Joining and being interactive with this forum means you care to learn and share.

If you need anything feel free to reach out to me at anytime.

You need to invest in software that taps into your courthouse and retrieves data. You can go physically to your courthouse, but who wants to do that when there is software that will.

I use 2 resources: 

"RESS" Real Estate Success Software- its $39.95/month, its nation wide as long as your local courthouse is online- typically is than not. Geared more towards rehabbers than wholesalers but can be used for both. 

"CRSdata" the software is only in certain markets. They do not service everywhere. Defiantly more expensive, I pay yearly so I cannot remember exactly but I think like $120/month +/- and you only get like 1-3 counties with that price. So, its not a lot of markets. But, its fast, its clean, its geared towards wholesaling- which is what I do. 

I prefer to have both, because than I have access to search multiple different ways. I would suggest you find something similar to your market. 

I am answering for entertainment purposes and this is not to be used as advice of acting as an attorney. Seek attorney advice.

@Tony H. Love the questions. I will help you understand each question as you wrote it.

1. Yes it would keep it private. The sale would not be recorded because the sale was within the trust but the owner is still named on title. You didnt mention the trustee at all, but if the trustees name is changing you would go to the register deeds office to record that but that shouldnt kick up any flags because the name on title is still the trust. 

2. This one is a sticky one. Look at the contract and see who signed on the contract. Was it signed as the trustee or as a person? If by a person and they did not sign as "Brandon Diaz trustee of 123 main street land trust". Than the wrong person signed anyway if it was signed by lets say "Brandon Diaz" than it wasnt signed properly and the realtor actually has a problem. That being said, I wouldnt highlight it anyway, and (I am not a lawyer) the beneficiary is a personal position and also a personal asset. The real estate is with the realtor not the position with the beneficiary. If the beneficiary is sold properly the realtor wouldnt even know. This one is sticky, but technically you are fine. It could just cause a fuss.

3. The answer is yes. This is the example I use why you should have an individual trust for each property. Because you would have to transfer the deed to another trust if there was multiple properties OR you would have to transfer all the other properties into other trusts if you wanted to keep the same name on title. 

4. If you are transferring the title you could treat it as sale and do a purchase and sales agreement and close and get a warranty deed and title insurance. If that is over kill you can just quit claim it and make sure the title company does a title search before the quit claim. If you know, that it is clean and not worried you would just quit claim it. I do not know the situation well enough to give an exact answer here. So I gave you a few answers here.

5. Very good questions. With Trusts the rules change dramatically. I dont know this answer fully. I would guess you would want to still have the company be domestically to operate. That would be the safe answer. But there is a very good chance that it still would be ok to be a Wymoning LLC be the beneficiary with the trust in Florida. I am not 100% sure but I feel good that it would be ok as well.

Hope I was of some help. I would tell you that the best would be to buy a course on trusts to help clear a lot more answers. 

Hey @Michael Moikeha listen to @Casey Mericle he is absolutely right. I have bought a lot of real estate through Trusts and think you should defiantly get a course on it. People that actually put themselves to learn about Trusts know that it starts becoming an addiction. Other countries have trusts but we are the only country that it makes sense to really do trusts. UK is $40,000/year to maintain a trust. NOT IN THE STATES.

Catching the beneficiaries is really hard to do if done properly. The books that I referred to you. Talk about trusts, but recommendation would be to actually set and know the ins and outs. They are very unconventional. They shouldnt be.

If you ever want to actually build a "company" that could be bought and sold, you need to understand the different structuring to certain entities. (LLCs, limited partnerships, C-Corps, S-Corps). Why you would use those? The books talk about that. Also what do you do in the event of lawsuits with those companies. The books I referred to you will help clear some understanding.

You could still use trusts with those companies. But, surprisingly there isnt a lot of real estate investors buying through trusts when they should be. Am I right Casey? They just seriously do not understand them enough.

But if you asked me where should you spend a little money to learn something really cool? I would say hands down- trusts. I promise you it will be worth it. You already buying property and will wish you did in the future if you dont.

First off, Great job on your year. Make this one better.

Very long answer to your question. Also, it is very attorney stylish so not many people will answer it. I have in depth knowledge about LLCs (History, weak states/strong states, hiding, etc) There is a lot there. The reasons the big boys are the big boys because they are smart and have teams that study this for a living and know it like the back of their hand. A couple of books to read on the subject that are really good, Garret Sutton who is Robert Kiyosakis "Rich Dad Poor Dad" asset protection attorney- has wrote several books and just recently released a book that is new. The name is Limited Liability Companies and Limited Partnerships by Garret Sutton. I finished it about 2 weeks ago. Another good book (smaller book but loaded with information) is the "Asset Protection Bible".

I know not everyone wants advice to read a book but seriously you will be happy I gave you that advice so you can understand how difficult of an answer that question really is. 

In those books they talk about trusts having the beneficiaries being owned with companies in weak states like California were piercing the corporate veil (Term you were looking for) is really easy. So, it is better to have that member be another entity in another state that is a stronger state like Wyoming.

Big mistakes that new investors make (I made the same mistakes starting off) was not reading the contract or understanding the contracts. Both are very easy to fix... 1. Read the contract. 2. If you dont understand that word that is in the contract "google" the definition to that word. The document will miraculously start to make sense all of a sudden.

I lost $500,000 and 9 months work in my earlier years in this business. The mistake was made from "ME". I did not read the contract and trusted my business partners that they knew what they were doing (one had 28 properties, the other had LOTS of money) and I thought they were smart enough people that I would not need to do that myself. It was a costly mistake. 

Learn from every experience. Now, I read contracts. Now, I think ahead of situations and think 'what contracts would I need in this situation?'. Than I read different versions of that contract to see what kind of language is being used. 

That one mistake that costed me was also a very valuable learning lesson and has saved me since because I took action what I once lost, and it has since been something that I am glad that happened to me because I really understood what I learned from that. 

Homework: If you dont understand your (start simple) purchase and sales agreement, lease agreement, go ahead and read it. If you read it and cant remember the details. Read it again. 

I had someone ask me some questions and the problem to their solution was: read the contract and understand the contract. 

Thank you

@James Wachob Lets exchange some phone numbers. Pm me