All Forum Posts by: Donald D Michna

Thanks for the pointers Dave Van Horn and Jay Hinrichs

@Linda Hastings, that makes sense. @Patrick Desjardins thanks for the insight. Some of the property owners on the tapes still correspond to what is in the his systems. I just need to spend the time going through each one. I will have to look at the register of deeds and see what I can find . Thanks for the feedback everyone.

I recently was able to get in contact with someone with a tape of NPL . During my due diligence (searching each county GIS) I found that some of the properties have different property owners than what is listed on the tape. For me this is a big red flag. Is this wrong for me to think this way? My understanding is that before a property is sold that the note would have to be resolved. Just a thought, but is this a bad tape? Is this individual trying to sell old paper? On the other hand is this tape so new that nobody has looked at these notes in years? This may be the case, as in a particular city many of the notes were foreclosed on by the city. What are your thoughts? 

Sam, I have been following the Milwaukee REIA for some time now and plan on being at this event. I currently own a duplex in the Village West Milwaukee where I am house hacking. I am looking for other investors to collaborate with that are in note investing. Do you know if there are any individuals in notes sector that will be attending?

After looking into this a little more I think I will hold off on the creating a corporation at this time. Mindy Jensen posted something that relates to my question earlier today and helped to make my decision. I am still interested if at a later time I wanted to incorporate, what the best corporation for a note investor would be? I understand that there are many things that go into incorporating, but generally what is everyone doing? Did I understand the S-corp correctly, it still possible to create a S-corp being a lender legally or not?

Thanks for the input everyone!

I understand that there is little risk to being a lender. I want to make sure that I separate the lending company from my personal assets. I am looking at my options and seeing what class of corp would be best fit for a not investor.

I am looking for a good real estate lawyer in the Milwaukee area. Particularly familiar with note investing, I have found a few in the area but would like to get some feedback from fellow BPers in the Milwaukee area.

I have been doing research to set up a corporation. I think that an S-Corporation would be the best setup, but I see that no more than 25 percent of the gross corporate income may by derived from passive income. I also see that financial institutions that are banks can not be an S-corp. Being a note investor you are in all reality a bank.

I am not looking at a C-corp obviously due to the double taxation.

I plan to talk to speak with a lawyer about this but wanted to get some feedback from some other note investors out there. 

Michael Henry I work for a general contractor. Typically when you write your contract it is good to include the schedule with the contract, this way the contractor is contractually obligated to the schedule. Once they are contractually obligated to the schedule each month the contractor should send you a pay application. The pay application reflects the work that has been performed in the past pay period. If the pay application does not reflect the work performed accurately, you reject or adjust that pay application to reflect the work that has been performed. At the end of the project there is a period of time (30-60 days) that 10% retainage is held to ensure that the work was done correctly. Under no circumstances should payment be made before the work has been completed.