All Forum Posts by: Ian Green

@Steve Morris

This is for when the borrower / owner of property is renting out their property but delinquent on the mortgage and the mortgage holder has filed foreclosure. The lender is able to collect the rents but needs a court order.

@Andy Mirza

We had a poor experience in Florida doing this.

There was already a receiver in place acting for the HOA. We came in for assignment of rents. It was granted. Judge assigned a local attorney to be new receiver. Well this pissed off the HOAs reciever because the judge never mentioned them. And they were keeping half the rent checks based on their deal with HOA. So they filed motion after motion trying to get our receiver removed because they were already receiver. Of course we took priority over the HOA. After many hearings where the new receiver had to show up for, we racked up an $ 8,000 bill. We did end up getting around 3 months of rent which offset it alittle bit. But it really wasn't as easy as putting our choice of proper management company in place.

Deal ended up ok, but I would be careful next time finding out who will be the receiver.

We did file motion for assignment of rents in another deal, in this one the defendant tried to say that the house was rented by family at 0$.

Well, the tenant left me a voicemail asking where she pays the rent checks to. So borrowers were caught in a lie and their attorney fired them because they lied to them and allowed us to get judgment without a fight, so we got no rents but got the case moving forward. In this county our own attorney was assigned as receiver so we didn’t have any extra costs.

So it’s very YMMV situation.

@Haley Gant

@Bill Exeter

Thank you for the responses.

My immediate goal is to start diversifying away from the stock market. I have what I feel are significant funds in the market in Roth IRAs and other iras / 401ks. Having the market at an all time high I want to start moving some to real estate. I have an LLC that invests in mortgage notes and I like that part of the industry. I would like to diversify still and invest in various note funds of people I am familiar with. My wife however isn't comfortable moving a ton of our retirement savings over, so the reasonable compromise is to just continue our savings over in SDIRA without selling our other mutual funds. That is why I am starting small.

For now I have the 12,000 (6,000 each) to add in, and will cashflow monthly our 2021 contributions. One option is to open only one IRA with 12k instead.

Most note Funds pay approx 10% so the large fees take away heavily from the returns.

That’s why this is a tough situation. Hopefully I can find a vendor that fits.

Ian

Having a hard time finding a low cost SDIRA custodian for a reasonably small balance. I do not want to move existing IRA funds out of the stock market but want to start putting new funds into various note investing funds inside a SDIRA. For a Roth that is 6,000 a year. Most custodians I find have a min of 200$ yearly admin fee. That plus account opening fees and transaction costs. If the funds target a 10% return , that's a 600$ return. At those prices it's more beneficial to just pay income tax at 25% on it. Especially when I would want to open one for my wife as well. 6k each.

What’s the sweet spot on asset value to have in a SDIRA. Anyone have a recommendation for someone low cost that makes sense for a small balance? Thank you

Hi Guys,

First wanted to say, I have this question with my attorney but wanted to pose the question to BP as well. Thanks!!

Looking at an asset in Florida that has a large city lien on the property and an equitable lien on the property coming soon from the receivership placed in the asset (Both senior liens). The note has some considerable equity in the property. The borrowers have abandoned the property, thus the receivership in place while its vacant.

1. If we pay off either or both liens prior to foreclosure, are those eligible lender expenses that we can add to the loan payoff? Any reason they cant be added as Lender expenses to the payoff?

2. If we don't pay them off pre-foreclosure and finish the foreclosure, if its purchased by a third party, they are responsible for those liens and we get paid our payoff amount right? Is the new buyer responsible to satisfy those liens right away before taking title?

3. If the property doesn't sell at foreclosure and we get the property back, are we expected to pay those liens off right away? Or can we take title subject to those senior liens and pay them off when the asset is sold? As this asset has equity.

Thank You!

Ian

@Carl Fischer @Jesse Hargrove @George Blower

Thank you for the responses. I guess I am just a little sticker shock. I was planning to put in 10-40k to purchase performing and non performing notes. For performing I was looking to get around 15% ROI. However if you add in about 2% Admin fees and transaction costs, is it even worth it? I have a Roth IRA currently and am invested in Mutual Funds that make double digit returns. They do not charge me an admin fee at all. Maybe I need to make more then 15% to make it worth it?

The stair step fee schedule to me is sort of fishy too. It doesn't cost a company any more to administer a 10k account then a 100k account does it? Seems to just take advantage of peoples balances.

Most have a 295$ per asset cost. But if I am in a performing note for 10k. That is 3%. 3% of my return out the window....

Sorry to sound negative, just trying to see if I am missing something here. I could see a 300$ a year fee if I were to purchase a 200k asset or something.

Hi everyone,

I am looking for some recommendations for SDIRA custodians. I have heard a lot of good things about QuestIRA, especially for buying notes in. However after looking at their fee schedule, they seem very expensive when it comes to admin fees. A 50k IRA will cost you 375$ a year in Admin fees. A 100k balance IRA will cost you 525$ a year in fees, etc etc going up and up.

They do have an option of a flat 295$ if invested in one asset. But still to me that's a lot.

Any other good places that are more reasonably priced? Or is this the cost of having a Self Directed IRA?

Thanks
Ian

Hi Shannon, Sending you a PM, I live in Florida too. Let's touch base! Ian

Being a long time Dave Ramsey listener and follower, this too has been a tough thing to think about as I plan my start in RE. I would like to use only cash as I feel otherwise starts opening doors to taking on too much risk. But I can also see that borrowing some will help speed up the process. I have my primary residence paid off and am debt free. Now just saving up for real estate. A lot of it too is the mind set of being debt free. The idea of not having any weight on your shoulder. Not having a payment every month. There is a psychological aspect to it. I have to say though to Sue Anne Cho Dave definitely uses no debt even in his business. He owns his office free and clear and has no credit cards in his business. All his employees use debit cards. So the thought that you can't run a business without credit and that he would use credit is incorrect. You have not listened to him enough to learn that.

@John Clendenon

I would like to hear more about your current flip. I am from Lakewood Ranch. I am looking to get started in the area.

Can I send you a PM?

Ian