All Forum Posts by: Kent Byron

Great tips thanks so much @Natasha Hunter!

I'm in the due diligence period for my first note that I found through an online note exchange. It's a performing note and the collateral is an SFR in a different state than where I live. I have read the very helpful BP posts from @MikeHartzog @DionDePaoli and @DaveVanHorn and others to get familiar with the process, but now that I'm executing a transaction I find that I need clarity/guidance about a couple of the next steps . If anyone here could offer advise about these items I would greatly appreciate it!

- For the valuation, is it ok to use the BPO service offered directly on the exchange website or should I purchase that service directly from a company like valuationvision? Or would it be better to reach out to local RE agents?
- How do I ensure that the mortgage loan terms are appropriate for the state that it is recorded in and the note is written in a way that it can be enforced? Should I find my own local real estate attorney to review it?
- How does the closing happen? Will I wire funds to the exchange website to record the assignment or should I use a local escrow agent that I choose myself.

Also, since there are state and federal rules about the terms you can use when originating a loan, I wonder if note holders also take on some new roles or obligations. Will owning a financial commitment like an SFR loan place my company into a different status with regard to new fiducial/regulatory/reporting obligations? Or does the note servicer perform any compliance actions required for the state where the note is recorded? (I plan to keep the note booked at the current servicer).

Thanks for all your very helpful and generous teaching on BP!

Thanks so much @Zoltan Fagyal !

@Nathan Gesner thanks for these great tips!  I wasn't getting any returned calls from PM firms I found on yelp and I've now moved on to realtors. I'm interviewing one tomorrow who seems good so far. Again thanks for your suggestions.

I'm looking for referrals for property management for a small multi-family in Milford near 495. Thanks in advance!

Thanks for all this helpful info @Casey Mericle, @Jay Raught and @Bob Malecki

I would like to invest a portion of my SDIRA in performing notes and have been reading about the process. Big thanks to all you experienced note buyers for the great information in this forum and the recent BP interview with @Bob Malecki  that was super helpful in outlining the due diligence steps. However, I'm still not clear on the process for vetting the financial status of the person(s) making the loan payments. At what point in the process are you able to check the debtor's creditworthiness? Is this available once you've made an offer on the note? Does the note buyer receive the debtor's identity and pull a credit report himself, or does the note seller provide this information, and if the latter, how do you make sure the details are accurate and up-to-date? Thanks in advance for your help!

Thank you everyone for all the great information you share on BP. I'm intrigued by the idea of moving savings from my current brokerage IRA account over to an SDIRA so I can invest in real-estate secured investments instead of equity. One thing I'm having trouble computing is that, according to the fee schedules I've seen on quest and other custodians, the fees for each item you own within the SDIRA are the range of $200-$300/yr per asset. That cuts out quite a bit of the cash flow from a small rental property or modest tax lien. So I wonder if I've misunderstood how the fees are calculated, or else you have to take that into account and buy larger valued assets with this method? I do understand why the fees are higher because the SDIRA is more of a concierge service instead of wholesale like having a traditional IRA mutual fund account, but just trying to understand how to make the numbers work out for my ROI.

@Juan and others, would you be willing to share the details on how it worked out when you bought tax liens within your SDIRA? Specifically the custodian's fees for acquiring and holding the certificate. Thanks very much!

Wow. THANK YOU everybody. You all are amazing with the responses. I put that post up and BOOM what a quick helpful trail of responses! What community. Thank you all for posting your views on the issue.

I have the same question. We bought a rental with a septic tank. I did so much learning with podcasts, reading etc and it wasn't enough, it seems, after I read this .pdf article, linked below. I'm worried about this issue now because tenants will never take care of a place like it is theirs. Too late, I am going to rent it out anyway. But I found a great educational pdf about septic care and I'm going to have a discussion with the new future tenants before they sign the lease. The difficult part is it's almost impossible to hold them accountable for what they do with the wastewater before it is flushed, since the evidence is a tad untraceable. I recommend everyone read this, there's data against hot tubs, sump pumps draining into septic systems and yes even water from latex and other paint brushes going into the septic. I attached the .pdf link and I also annotated it with yellow highlights for emphasis.

http://www.nesc.wvu.edu/pdf/ww/septic/pl_fall04.pdf