All Forum Posts by: Jamison Schweitzer

Hi Meghan.  Sorry to hear about the property but fortunate you caught it on the walkthrough!  I'm from Iowa City and plan to attend tonight.  My business partner may join as well.  Thanks for putting this together and sorry for the late RSVP!  (I was thinking I had already done it)

I love working with Melissa Schooly at Great Western Bank in North Liberty. They have been more than accommodating with my needs as an investor.  Worth giving her a call.  You could mention my name too... haha

Great to see an Iowa City presence on BP!  I live in town and have 3 units in the area.  One in IC and two in Riverside. All are cash flowing nicely.  The deals are out there but hard to come by. Get a solid analysis tool and keep active. That's what I try to do but at this point, I'm pretty much investing on the side so I'm not as on top of the market as I'd like to be.  

I've had luck with estate sales and really run down properties.  Making a low ball offer (one that makes sense to an investor) works sometimes depending on the seller's situation.   Once you get the place fixed up, renting it out is a breeze as long as you stay on the August to July rental term which is more or less mandated being it's a college town. 

There is a local investor group that meets once a month.  You can find it on Meet Up.  I've gone several times and it's a good networking tool. 

I've been looking into both Danny's websites and his CRM, REImobile.   Also I've been impressed with REIpro which is from Chris Goff.   However, I haven't purchased either yet so I don't have first hand usage. 

Welcome!  I used to live and invest in Portland. Primarily single family fix and flip. Best of luck in your ventures and man do i miss that city!

Yes, the buyer's name wouldn't show on a title search, but that is because the buyer only has a contract to purchase. They don't own the property so it really isn't their asset to hide. All the buyer has is an agreement to purchase the property.

yes the sales price is in the contract.  The contract may have been signed many years ago when the market was weak. 

If you want to learn more about land contracts look up Bill G. or Brian Gibbons.  

Hi BeBe

I'm not an "expert" but I have recorded a memorandum of land sale contract before in Oregon (which sounds like the same thing you found).  It basically is a document that is recorded which informs the public that there is a contract in place to purchase the property. It clouds title which means that just like a lien or judgment, it must be satisfied upon transfer of property.  So, with the memo recorded, it is like the buyer inserted place holder saying no one else has the right to buy unless I cancel my contract to purchase. 

So, the person on title still owns the property, there is just a memo recorded that says that someone has a contract to purchase the property. 

For example I sold a property on contract where there was an agreement that the buyer would make a payment to live there each month, then after 2 years, the buyer is required to purchase the house.   However, if things don't work out, either party can ask to dissolve the agreement.   Sort of like a lease-option. 

No idea about a corporation grant deed....

Consult your lawyer

-Jamison

Thanks Chase

Hey Matt

I'm a fellow Iowan investing in the Iowa City area.  My wife and I own an investment company (2 actually) and a general contracting/remodel company.  We hold 50/50 interest in all companies. 

I'll give you some of what I know although obviously consult your attorney and CPA.

First, as far as ownership, my attorney suggests using a LLC to hold real estate. He also suggests not holding all your properties in one LLC but rather only put 1 or 2 in a LLC and have multiple LLC's (assuming you're investing in residential).

My CPA suggests using a S-corp to rehab/sell properties and not to hold property long term in that corporation. (I assume you know the difference between corporation and LLC taxation?)

I think the point they are stressing is not to put all your eggs in one basket. Putting assets in several companies makes it difficult for people to access your assets if you are sued however, it also comes with more paperwork and associated costs.

Regarding becoming a contractor, if you are going to be doing much of the work and you have the skills, I would highly suggest it. There is no test in Iowa, only a $50 fee which can be waived if you do not have employees. You'll want liability insurance.  What I do is have my investment company pay my contracting company to do the work on my properties.  That way my contracting company is liable for the work.  And it serves as my primary income. 

Because my wife and I own the company together I thought about making her a majority owner in order to consider minority/women owned business grants etc but I really don't know if there is any advantage to that.

Although we never want to assume a partnership will end badly, it is very important to have a well written agreement in place spelling out details of what will happen in such case. (even with your wife or other family) Your attorney will help with that.

Marital status should not matter as you are simply creating a partnership.

Regarding financing, I use a commercial banker at Great Western Bank.  They underwrite most of their loans in-house and are very flexible.  If you purchase the right properties low enough, I've used bank financing and received a check at closing to do the repairs etc....

Otherwise get creative...

Good luck and ...

I AM NOT AN ATTORNEY OR CPA, NOR DO I PLAY ONE ON TV.