All Forum Posts by: Liz Pineda

I create individual LLCs for each of the properties for asset protection purposes, but please refer to an asset protection lawyer to understand the full process on doing this. It can get very complicated. 

The only thing I can think of are Contingency Clauses such as:

• contingent upon financing
• contingent upon inspection
  
• contingent upon finding a qualified buyer..

Hope this helps :)

Liz P.
www.lnlrealtygroup.com
[email protected]

Hi Kyle,

The only time when you need to be concerned about Dodd Frank  is upon selling the house. As of right now, there are no restrictions on BUYING a property as an investor using creative financing, such as subject-to's.

What the Dodd-Frank Act does is provide protection to a buyer who is being foreclosed or evicted after they bought a house using any type of creative financing (land contract, rent-to-own, owner financing, etc)

If in the future you are considering selling that house using owner financing, rent-to-own or a land contract; you need to follow these three criteria:

1. There should not be a  balloon in the note (meaning it must be fully-amortizing)
2. The interest rate is fixed for at least five years, and
3. You “qualify” your buyer.

Remember, you should consult with a qualified attorney in your state whenever you sell a house using any type of creative financing.

Let me know if you have additional questions.

Hope this helps :)

Liz P

www.lnlrealtygroup.com
[email protected]

It will be my first time too - I don't know about the interpretive dance :)

Price Increase Alert!!!!

I have been using Investor Carrot for about a month and it's made my website look so professional. I love the ease of use and all the tools they provide, but you do need to know a bit about wordpress and SEO to use its full features.

Currently you can get a plan with InvestorCarrot for $29/mo for 1 website. But they're actually eliminating that plan, eliminating the $39/mo plan... adding some new features... etc. But the cool thing is that for all people who are members BEFORE August 1st... you'll be grandfathered in on the old pricing.

- Liz P.

Hi Jon,

Thank you for your reply. I'm actually looking for a local mentor/contact in Colorado that can walk me through various local creative financing deals and end to end process.

Thanks,

Liz

Hi Julie! Are you currently working with a mentor?

I am looking for a real estate investor in Colorado executing creative real estate financing, such as, subject to's, land contracts, rent-to-own, etc.

If this is you or you know someone, please reply to this post :)

Thanks,

LP

I want to make sure that I select the right legal entity for my business. I know that for active ordinary income (example: flips) I should do an LLC taxed as an S corp and for passive income (example: rentals) I should do an LLC taxed as a Partnership. I also know that for Asset Protection I should have an LLC for each property I own.

My business will be focused entirely in selling properties as lease options and land contracts (installment sales). With that said, I would like confirmation that lease options could be considered active income because it is technically short term, thus lease option properties should be part of my LLC taxed as an S corp. Land contracts on the other hand could be considered passive income because they are long term, thus land contract properties should be part of my LLC taxed as a Partnership.

I'm not sure if this is correct or if there is a better strategy to report income and losses for Lease Option and Land Contracts properties.

Suggestions very much appreciated.

Thanks in advance!

Liz