All Forum Posts by: Bob Malecki

Newer investors in real estate and notes tend to want to invest only in their local area out of staying in their comfort zone. They are of course extremely limiting their universe of opportunity. Learning to get out of one's comfort zone and develop the tools and relationships needed to explore other markets is a key aspect for the small real estate investor to find better values and have greater success.

Yes, my "employee contribution" into the solo 401k is maxed out at the limit of 26,000 per year. Realize too, that this has to be from active income such as consulting, so passive income such as rental income cannot be used. This is why I have my first LLC on the upper left corner as the active income "bucket" which collects fee and come from the other LLCs and then I just do a contribution every month into my solo 401k.

I lost about $10,000 to Bob diamond in a training program about 8 years ago. I recommend you move on

I've been buying distressed and performing notes using Roth Solo 401K. All profit is tax free. The soloK is a great way to build up retirement income in tandem with transactions outside of your IRA. Uploaded is a general diagram of my cash flow where the lower half is tax free income and upper half is taxable. I transfer $26K/year of active income from some of my LLCs to add more funds to my soloK to invest in notes, JVs, lending and Bitcoin.

We purchased an npl note for $450,000 on a home in Washington State with an approximate value of $600,000, great. Title history had quite a bit of hair on it - a bankruptcy, a divorce, and the lender suing the borrower for various reasons about 10 years ago. We knew this project was going to be complicated and we made sure that our purchase agreement with the seller of the loan had specific terms related to our due diligence findings.

We proceeded to foreclose and the borrower lawyered up and filed a lawsuit. Her defense was statute of limitations based on a filing not being done correctly by the original lender in 2006. We filed a claim with the title insurance company that originated the lenders insurance policy, they eventually approved the claim and beared the cost for representing us in the lawsuit. 

Long story short, we eventually got the company that sold us the loan to agree to purchase it back based on a specific clause we required in the purchase agreement that was related to the statute of limitations issue that we experienced in the lawsuit, and had anticipated in our initial due diligence as a possible issue at foreclosure.

This clearly illustrates the importance of making sure you have a lender's title insurance policy on the loan, and that you execute a well-crafted purchase agreement that covers your butt should something like this put you into a litigious situation. This also illustrates that borrowers on higher value properties with defaulted debt can be much more challenging than those who own lower valued properties.

We've done co-op pool acquisitions with Aspen and they have been a good partner for us so I would say you're good to go!

I agree with you @Brett Burky I really miss the camaraderie with the in-person networking. Of course there's always the possiblity Mike will get up and dance again.....

With a deed of trust you're the bank and have the house as collateral for your loan to that buyer. With CFD you still own the house until the contract is paid down and therefore still have all the liabilities that come with home ownership. So for me, cfds are not worth the risk just for this reason alone as well as the liabilities mentioned in the posts above.

Hey Dan what service do you use to run your tax reports every 6 months?

I agree with Dan's synopsis on this. I generally look for event city of at least 20,000 so that there's a solid base of buyers should I have to foreclose and resell the property. That would be for generally isolated towns, although a suburb may have a population density of 10,000 but within a 30 minute drive of a major metro area I would still buy the loan there. 

when performing my initial demographic review I typically will look for a big box store such as a Walmart home Depot or Lowe's which indicates to me that if those companies are putting in a store the population density is solid or at least has growth potential.