All Forum Posts by: Bob Malecki

Would Tacoma be a good target for better values?

I know a few active investors who are essentially flipping mobiles and carrying the paper back to owner occupied buyers. It's a good way to create cash flow for your portfolio and avoid being stuck as a landlord. Even though there may be some conventional financing available, realize that many lower middle and lower income people cannot qualify for a conventional loan in doing a creative seller back note will solve their problem and provide you cash flow.

As long as you qualified your buyers and they have demonstrable steady income, I see no problem in being able to resell seasoned paper. Remember, there's a lot of self-directed ira money out there looking for yield, and many would be thrilled with a 6% coupon rate.

Thanks @Dion DePaoli, the current borrower/owner has legal counsel working the receivership. As I understand it this guy is defaulting on ~$20MM worth of properties in western WA, a real gem of a guy....

I acquired a 2nd position note on a 4 plex located in WA state, the borrower does not live at the property. Its scheduled to be sold this November and I was expecting to get a decent payoff on my note, but the preliminary closing statement shows expenses/payoffs that put the closing total about $180K over the sale price, comprised of prop taxes, broker commissions, unpaid utilities. The owner/borrower/seller has told me that he is going to put the property into receivership, and I'm looking to determine my risk on this, not being experienced with receiverships. 

If anyone has some experience/knowledge on what  may be in store, it is appreciated. My concern is that being a junior lien, I may get wiped out, although there is equity above the senior by approx. 20% of the current selling price/value (before any closing costs, taxes, etc). Any thought on this is appreciated. @Dion DePaoli any perspective you can contribute is appreciated. 

Bob

Well, I'm not a legal professional, but to avoid any prohibited transaction issues, you should buy the note with your SDIRA funds, have the assignment recorded then sell it to the other party and they will record the AOM in their name. If all your ira does is broker the note, then that is a "trade or business" transaction and subject to UBIT which can be around 35% of the profit. I recommend contacting your IRA custodian for some guidance or an attny who is versed in SDIRA matters like Mat Sorensen

If you buy/have a performer that is well seasoned and has a borrower with a substantial ability to continue payments, you can sell a "partial" of X amount of the future payments for a set return to the partial buyer, then take that capital from the the partial sale and buy another note, sell a partial, reacapitalize, etc.

We just engaged with Update Capital, they offer a very robust investor portal and are reasonably priced. More info at https://www.updatecapital.com/reporting.html Note that I am not affiliated with this company other than being a satisfied customer

We are trying to get a 3/2 SFR renovations completed on a home in Mishicot and need a plumber to do some pipe repairs. Nothin major, just need to get the home FNMAE compliant. Any recommendtions are appreciated. We want to get this home on the market asap!

Thanks

I engaged with Bob Diamond and his brother about 8 years ago on their multi-family investing scheme and lost about $10,000. Enough said I'm not a big fan of his programs

I've been with FCI for the past 7 years and the web portal is the best I've seen for us independent debt investors.