All Forum Posts by: Marco Bario

I don't live in IL, and I'm by no means an attorney, but let me say this - when you wholesale, you're selling an assignment of the contract, which is personal property. You aren't representing either party; you aren't negotiating the price or terms between the buyer and the seller (if you are, stop doing this), and you aren't selling real estate.

The ideal buyer depends on the note. 

When I can, I work with banks such as First National Acceptance Company (a division of First National Bank of America) or Grand Bank. If a note isn't a fit for those buyers, I reach out to others who might have an appetite for that specific asset. In some ways, I'm a matchmaker. 

Important for me is working with partners who know the business, specifically buying seller-financed notes, and who I enjoy working with.

@Lucinda Hamre -

I wholesale seller financed notes (I prefer the term over broker). In reality, I wholesale some of the deals I close and buy the rest. 

Wholesaling has made me a better note investor because:

1. I see more deals, and I'm involved in more closings 

2. When I submit assets to large established buyers, I learn how they price and keep a finger on market pricing

3. When I close with large established buyers, they do most of the underwriting, order title, and BPO. When they need documents or questions arise - all communication to the seller is through me. Therefore I can ask questions and learn from very experienced buyers. 

4. Over time, and after wholesaling quite a few deals, I felt comfortable buying seller-financed notes for my portfolio. 

5. I've developed strong relationships with my wholesale buyers. I know I can bounce questions off them related to my asset purchases.

As a get-rich-slowly strategy, wholesaling seller-financed notes works well for me. It plays to my likes and the lifestyle I want at this stage (career #3!) of my life. 

@Kofi Thompson -

I like what @Randy Rodenhouse said. 

Another option would be to negotiate no payments, or interest-only payments at the front end of the term. 

Hi Dimitiry - I've had a Solo 401K for many years, which has been excellent.

I'm a single-member business. The business is growing, and I've considered adding an employee. The Solo 401K holds several investments which utilize debt financing. I'll incur UDFI tax if I roll to an SDIRA. I said, "I'll never have employees," but now I'm finding the Solo-K to be a burden. 

@Kenneth Bentley - Mat Sorenson's book "The Self Directed IRA Handbook" is a great place to start learning about self-directed IRAs and 401Ks

 Yes - Property is depreciated. Debt is amortized. Using subject-to, or any amortizing debt, you can capture both. 

@Nick Snider

Lease the fourplex with the ability to sublease. Plus an option that may or may not include seller financing. 

Present an offer to the broker which requires you to be present (or on Zoom) when they present the offer. You need to speak directly with the sellers.

Talk about what the property can afford, not you, the market, etc. Ask what they plan to do with the money. Develop a relationship and figure out how you can help.

I wouldn't offer a short-term balloon. Balloons tend to pop at the worst time. Perhaps a 30-year amortization and a 15-year ballon. That would give you a better payment.

Another approach is a master lease plus an option. Sellers would keep the depreciation. You'd capture cash flow and appreciation. If there's a mortgage you can also negotiate to receive the amortization (paydown of principal). 

@Jack Pinard 

I like Paper Source. The content is repetitive, but it's good if you haven't heard it before. I spend my time in the exhibitor's area networking – and getting out for breakfasts and dinners with vendors and other investors. 

There's a conflict this year with a four-day creative dealmaking class I'm also interested in. I haven't decided what I'll be doing, but if we're both at PS, please look me up.