All Forum Posts by: Julian Buick

@Maria Keating if you want to go to the absolute best meetup in this area I suggest you hook up with @Troy Fisher   He hosts a meetup in Kirkland on the first Friday of every month. It is a lot of fun and there are a lot of people there really involved in doing deals. 

@Roxanne Baisden it stands for Health Savings Account. @Ben Roberts you still have to pay tax on it when you withdraw at 65 just like any conventional IRA or 401k. The thinking is that you will have less income so you will be in a lower tax bracket and not have to pay as much tax. Are you planning to use it for wholesaling? How would that work?

For anyone that's interested, this is what I did:

I had the borrower sign a new promissory note with my custodian name FBO my IRA account and destroyed the original.

I had the title company create an assignment of the deed of trust to go from my name to my custodian name FBO my IRA account. I will have to sign this personally. I spoke to my custodian about this and they said it would be fine. After it has been recorded it should go to them and they can stamp their approval on it.

Seems pretty straight forward. Anyone see any potential issues with this?

@Brian Eastman @Dmitriy Fomichenko @Charlie Fitzgerald

@Charlie Fitzgerald custodians do not create or modify promissory notes or deeds of trust. What @Brian Eastman said was to work with the title company to prepare the documents. I'm trying to find out what documents need to be prepared in order to change the name on the promissory note and deed of trust. Can there be an amendment? addendum? Revision? 

@Charlie Fitzgerald if I had a time machine to do that I would use it to go back and fix the problem. Thanks for the input. 

Anybody got any constructive suggestions? @Dmitriy Fomichenko got any ideas?

Keywords: SDIRA private lending notes

@Brian Eastman this was not an oversight by the custodian. I should take responsibility, I should have verified what had happened. The promissory note and deed of trust were written up and given to me to review. I realized they were in my name and modified them and sent them back to the borrower with the reason for modifying them. I sent the modified documents to my custodian and told them that is what will be signed. The custodian only requires proposed documents and not signed documents. There was no requirement for me to sign the note or trust deed so I was not at closing to see what actually got signed. When I got the signed documents from the title company they were the old ones, not the modified ones. At that point they were already recorded. There is usually no requirement for my custodian to sign anything so why or what would they need to sign now? It's only the borrower that signs the trust deed and promissory note. The person I talked to at the custodian was pretty clueless and didn't understand what I was talking about. The title company said they have never had to change the name on a promissory note and trust deed before and don't think they are allowed to do it. They suggested I Talk to my attorney. Sounds expensive

I just realized that one of my investments in my SDIRA was inadvertently executed in my name and not the name of my custodian FBO my IRA. Does anyone know how to change the Deed of Trust and Promissory note to my custodian's name FBO my IRA? The Deed of Trust was recorded a few months ago. I don't even know what vehicle would be used to make the change and who can do it, an Escrow company? Attorney? Any help is much appreciated.

@Jeff Caravalho if I understand it correctly, you are putting up 61k in first position, the borrower will use 40k of their own money for the rehab. That's 101k but the whole project will cost 181k. Where is the other 80k coming from? If they are putting that up as well then it seems relatively safe, assuming the values you have quoted are correct. Being in 1st position with 43% LTV is pretty good. Hard money lenders will loan up to 90% LTV on occasion and even 100% of rehab costs if they have a good relationship with the borrower. The broker will usually charge a loan origination fee which could be from 1-5% typically. They keep that and you make the interest. Your numbers seem a bit off though. If you are getting about $500 a month that adds up to about $6000 a year not $7500. 9% of $61000 is a little under 6k.

@Donna Gronvold not sure this is the correct place to post either but I have been involved in some private funding for real estate projects and would be interested to see what's on offer. PM me. 

@John Thedford what do you mean you typically do cash out Refis? Are you charging 4 points and 12% for cash out refi's? I thought the whole point of a cash out refi was for a person to pull out some equity at a low interest rate to be able to use for the next project.