All Forum Posts by: Jarrod Tucker

@Alecia Bolton - I do the majority of my note transactions in my SDIRA for this exact purpose.  I have a full time job and pay what I consider to be a lot of taxes from my W2 income.  

If you have traditional rentals where depreciation (as April points out), etc could help offset the note interest income, that would be an idea to explore; however most note investors get into this area to avoid dealing with the tasks associated with traditional rentals.

There are pros and cons to doing S-corps as with anything and it will depend on your personal situation if it makes sense to do.  My input would be to talk with a CPA that is knowledgeable in the area of real estate. 

@Chris Seveney Thanks for sharing what you do.  I had listened to your podcast about selling partials before, so that was helpful as well.

@Jamie Bateman Thanks for the sharing the blog post.  Excellent overview of each of the approaches!

@April Banda Thanks for the information on the training.  I am planning to attend

I currently own a note that I am considering to sell a partial on to help me recapitalize.  This will be the first time that I would have done this.  As I have researched the different methods/approaches, I have come across 3, but I would like this group's advice and watchouts of the different approaches.

Some background information:

-Note is Performing 1st; very low LTV and ITV; 8 months pay history; on Auto Pay; 64 payments remaining

-The buyers of the partial are good friends of mine, so I want this to be a good safe transaction for them.  We have agreed on a price for 48 payments.  They have limited knowledge of notes at this point and doing this transaction to get their feet wet.  They aren't interested in servicing the note and prefer to simply get the passive income.

3 Approaches (my simplified understanding of each)

1. Sell a partial - The note and mortgage would transfer into their name (like when I purchased the whole note) for the 48 months and then transfer back to me.  I could still service the note for them to not cause any concern/confusion for the people paying on the mortgage.

2. Hypothecate - From what I understand with this approach, the "buyer" is actually loaning me money under a set of terms that would replicate the partial structure/number.  While the note would be collateral, I ultimately still control the note?

3. Place note in Trust - I would act as the trustee and the buyers would be a the beneficiary.  

If there are other options that you all can think of, I would appreciate the input.  Thanks!

@Chris Seveney

@Marco Bario

Thanks for the tips and information!  It will definitely be helpful to me this year making the transition to a true CRM application.  

@Chris Seveney  Thanks for sharing this information!  I will definitely check out the webinar.  

Quick question - Do you have any recommendations for resources on Podio?  I do a lot of direct mail marketing for notes and have only used Excel up to this point to track this.  I am quickly going beyond the limits of what I can manage with spreadsheets and think utilizing a database structure will enable me to become more efficient.  

Thanks!

Thanks for the info everyone!  I will be reaching out to my custodian Monday.

I am currently have a verbal agreement in place with on a note lead I picked up through my marketing. With this particular note, I would like to flip it to another investor; however I would like to know if I can do this within my self directed IRA account. I would greatly appreciate any input you all may have on this. Thanks!