All Forum Posts by: Josh Thomas

@Brian Eastman Ah yes an LLC inside a Solo 401k is a much different animal. I wish I could have one, but I'm still W2 for now.
I'm glad to hear the audits you handled went well. I guess I'm a bit overly careful, just in case they decide to scrutinize these types of entities in the future.

@Dmitriy Fomichenko Right, well it's actually your SD IRA Custodian who will be the sole member of the LLC. I'm simply recommending you avoid naming a non-qualified person as Managing Manager in the Documents Of Organization or any documents signed on your entity's behalf. Non-linear family members are qualified. I agree you should not have any issues if you do name yourself and follow all the formalities... just a word of advice since a self-dealing judgement would wreck your retirement plans.

Be very careful when you set up a SD IRA LLC and seek legal counsel. Although there haven't been many court cases proving this, the IRS could disqualify your entire IRA if they think you are self-dealing, by actively managing your investments. To avoid that nightmare ideally you should name a sibling or another 'qualified person' as the managing member of the LLC (not yourself). You can still be involved and write checks, but keep it under the radar ;)

@Jeff Rabinowitz I'm not sure how your LLC's manager's name would not appear on your loan servicer's set up documents? They'll require signatures of an authorized contact person... unless you are self-servicing (which is definitely not recommended). Yes, your entity name will be the only one that appears on publicly recorded documents... but it's best to play it safe here.

Thanks everyone for your help! I now see the original note has language that addresses this type of situation. I will also rely on my servicer to help me though the details to pay the taxes before the tax sale.

I have another question for anyone familiar with Baltimore City Maryland tax liens... If their is an active tax lien on the property, and the tax lien holder has already initiated foreclosure, can I as a 1st note holder negotiate with the tax lien foreclosure attorney? Because so far the attorney will not speak with me regarding any details, saying only the property owner has that authority. So far the borrower's head is in the sand and will not speak with me (so a power of attorney is not possible). Any advice?

@Account Closed Yes (I will be soon)

I'm looking at two non-performing 1st notes with substantial unpaid property taxes that will be sold at tax lien sales in April. What is the procedure to pay the taxes as a new loan to the borrower? Where can I read up on legal requirements (both in Florida and Maryland)? So far the borrower has been unresponsive. Do I need their blessing first? Can anyone recommend an attorney if one is recommended? I plan to begin foreclosure proceedings shortly after these unpaid taxes are handled.

Before I pull the trigger to sign a Purchase and Sale agreement for a performing 1st note from FCI, I'd like to understand the ideal closing process.

Would you recommend I hire a local title company to preform a title search? I already have all the paperwork and I've researched the address heavily though the county websites and can see all the chain of assignments look correct. I'm not aware of any 2nds or municipal liens but I suppose the search would verify this.

How many of you get a lender's title policy (insurance) for notes? If so is this worth it?

What about taking the note assignment into a land trust within my LLC for an extra layer of privacy? Or is that overkill?

I've found Rentometer in Baltimore is skewed towards the high end. If you have an "A" condition property with granite, stainless, etc. you may expect those numbers. However if you have average condition multi family apartment in a low income area, expect much less.

I like using Craigslist for checking market comps. I don't think Rentometer necessarily keeps up with seasonality changes, availability factors, etc.

I received a variety of different answers to my building code questions when talking to city inspectors or zoning over the phone.

This site has a broad overview, but no specifics on things like fire detectors for example.
http://legislativereference.baltimorecity.gov/city...

You could hide your personal name from public record by closing into a land trust. 

Some state counties do not allow 3rd parties to display certain public records by default, which could be why you see missing info on some properties.