All Forum Posts by: Jerel Ehlert

Looking for actual documentation involved in a "deferred sales trust" transaction.  I get the basic mechanics.  Looks like the IRS considers it an "intentionally defective grantor trust."  But I have yet to see a copy of the irrevocable trust or a sample installment sale note.

Not in Dallas, but unless you just want to see him in person, Zoom and email cover 90% of our interactions these days: https://www.dicklawfirm.com/

I refer to him regularly and co-counseled with him.  If he can't, I'm sure he could make a referral.

I'm not board certified. Merely a Texas licensed attorney who started REI in 2000. Don't do it. Not worth it. Sell on wrap with note and deed of trust as lien. You get much more protections as a seller/lender if done right.

Be careful.  This looks exactly like offering a security as a broker-dealer.  There are exemptions and exceptions, but this sounds dangerously like a securities issue.

Like some said, roll over the 401(k) to a SDIRA.  Rolling over is always going to be your 1st step.  

There are lots of custodians that will let you lend out on private notes to flippers or buy and hold LL REI property. Sun Trust, Quest Trust, RocketDollar, etc., etc. But some won't, so ask in advance.

One thing you could do is use your retirement funds (in a SDIRA) to buy life insurance policy on you.  You can then borrow against the value of the policy.

Another thing you could do is invest in stocks/bonds, then borrow against the value of the portfolio.  I've heard products that will lend up to 40% of the stock value and 60% of the bond value.

Lots of ways to use the IRA money to invest in real estate. Just talk to a licensed professional in your jurisdiction who represents you...that's not me.

Yeah, hypos are fun, but what you do is going to depend on what the facts of a particular situation really are.  Sometimes the structure depends on what the lender demands.  Sometimes it depends on the leverage of equity participants.  

Here's one for you: Let's take debt out and equity partners out - what would you structure if you had 100% of the capital to fund the project yourself?  Use that as your base fact pattern.  It is the simplest form.  Play all the variants against this base.

DEPENDING ON WHAT STATE the property is located in, some of those liens might be void or voidable.  There's a statute of limitations on certain liens.  Each state is different.

I'm only licensed in Texas as a lawyer, but I'm not your lawyer.

Let's say everything you say is 100% true, you take this to court, and win.  What is your damage model?

When it comes to legal discussions, seek advice from lawyers licensed in the state.  Every state is different.

Don't just "copy and paste" from the deed you got (i.e., just changing "grantor" and "grantee").  Sometimes there's vendor lien language and no one here knows what you have.

Never heard of a "bargain and sale deed" and I doubt anyone in Texas will take that.  SWD conveys with all 6 warranties that a GWD does, but only for the time the grantor was in title.  Common practice and acceptable.  Getting just anything from the internet is what we lawyers like to call "full employment."

Keep in mind, you might be voiding some parts of your title policy.  If a claim pops up, the insurer might not cover your defense. 

YMMV.

I don't know anything in particular about the laws in MT, but *generally* when an insured loss happens between contract and close of escrow there are a couple of accepted solutions.  For example, let's say a house is worth $100K and a covered loss happens that pays $20K.  Buyer (B) and Seller (S) bargained for the purchase/sale of a $100K house.

* S makes repairs to restore property to $100K value; B buys for $100K, gets $100K house.

* S does not make repairs, keeps insurance money; B buys property for $80K, gets $80K house.

* S does not make repairs, delivers insurance money to B; B buys property for $100K, gets $80K house + $20K insurance check (really an offset resembling above).

When the damage is so extensive that the repairs substantially and materially improve the value of the house, probably easier to just renegotiate.  You buy the lot and they keep the check; or you pay the agreed price and they sign over the insurance claim to you - you do the rebuild.