All Forum Posts by: Chris Eidson

@Thomas Rutkowski

I have been following your discussion and I have to say this is the best explanation of how to properly design use a life insurance policy that I have ever seen.  It seem likes for a real estate investor, an approach like this gives you the opportunity to borrow money at a net rate that is better than you can typically get any other way.

@Thomas Rutkowski

For purposes of investing in properties, wouldn't it be better to simply get a bank who would utilize your cash value as collateral for your necessary down payment? (I.E. 20%)  Then you would pay no interest on the amount pledged and then be able to have the assignment released after the property value grew 20%?  You would then continue to earn your tax free returns in the policy, but have the benefit of also earning returns on that money in real estate at the same time.

@Bruce Lynn

I would be fine knowing the original amount, because, as you say, I could estimate the balance.  That also gives me an idea of what someone may have in the property if it was purchased off market.  I have seen some deeds that say there is a promissory note, but do not state the amount.

@Patricia Steiner

Thanks.  I needed to take the additional step.  I found who the owner was on the tax assessor site, then had to look up the owner name to find mortgage info.

@Patricia Steiner

That's why I asked, because I do like to know before considering making an offer.  The vast majority of the time that I lookup on the assessor site, it just shows a warranty deed with "$10 and other consideration".

@Andrew Postell

When I have viewed past sales, I see very few tax liens sold with a home.  Seems to be almost exclusively vacant land.  Is this accurate and what conclusion would you draw from that?

What is the best way to find out how much a current owner's original mortgage was?  Most often the appraisal district will not have a document with the mortgage balance? 

@Brandon G.@Ben Freeburg@Amit M.@Marcony Simoes

If you are showing paper losses from your RE business, is there any advantage to the QBI?  I'm assuming not.

@Juan Santos

I know very little about it, but did a quick search on here and came up with several good threads.  I would recommend identifying folks who have done it personally, to get the nitty gritty.  Check out this thread: 

https://www.biggerpockets.com/forums/50/topics/107...

Keep in mind, generally speaking, nothing is as simple as it sounds when someone is trying to sell you something.  If it was, everyone would do it and a lot more people on here would be talking about it.

@Ricardo Diaz

There may be some things you miss out on by not establishing yourself as a "real estate professional".  You should visit with your CPA about strategies.