All Forum Posts by: Jim Farrell

@Michaela G. , one of the best things about "being the banker", I.e. a note investor, is acquiring notes around the country. I think I'm not alone among note investors in that opinion, either. 

Door knock services are generally used by investors who live out of the area from the subject property, in which case it wouldn't be convenient to make a personal visit. 

You're right, it can be a crapshoot in terms of gaining valuable information, but it's just another tool in a note investor's bag. 

In my case, it's a self-directed IRA.

@Bob Malecki , are your Reg D fund investors of the "friends and family" sort?

@Dion DePaoli , is this something a servicer could handle?

@Jordan Higley , I would be in no rush to refinance.  A 3% loan amortized over 30 years is a terrific deal for you, the borrower.  One that leads me to question, however, why a private lender would have offered it?

Thank you, @Loren Whitney .  I have been contemplating--if I do decide to convert--to do it in stages to mitigate taxes. Not an easy decision, though, the idea of the Feds taking a big bite all at once (or twice).  

I am squarely on the fence of whether I should convert my existing SDIRA to Roth, and would love some input from members.

A bit of background: a while back, I rolled over funds from a previous employer's 401(k) to an SDIRA.  I've seen advice on some of the forums that one should just "bite the tax bullet" sooner rather than later, and convert to Roth. The thinking being that even a smaller pot of money--if allowed to compound and grow over a number of years--would then result in tax-free withdrawals down the road.

The assumption one must make in doing this is that the income drawn on down the road--since it's tax-free--would be more than if I kept my funds in the existing "regular" IRA, let those investments compound, and pay taxes when I withdraw.

Looking forward to responses!

@Peter Grosso , my obligation on the financing obviously doesn't go away when title is transferred, I'm personally on the hook and intend to make my payments timely. The loan contract remains between me (personally) and the lender. What I've done, however, is reduced substantially the ability of knuckleheads to sue me personally through the LLC.

@Dustin Morgan , I look at this similarly to an investor buying a property "subject to" existing financing, I.e, assuming debt. In that situation, the loan documents usually permit the lender to "call" the loan. But why would they unless the new owner isn't making payments?

Same situation with me. While my loan docs may address how title is to be held, the lender will be perfectly happy as long as I make my payments on time. 

By the way, I had an attorney prepare the quitclaim and to his credit, he did bring up the requisite point about title. 

I have a completely different opinion on the matter than @Dustin Morgan . I hold my rental properties in a series LLC. LLCs are perfectly designed to do what the name says: limit liability. In today's litigious society, I want to make it as difficult as possible for an ambulance-chaser to have access to my personal assets. LLCs--naming an unrelated party as a resident agent--does this for me.

You are correct, though, on the financing challenge. Lenders won't lend to an LLC, at least not without a personal guarantee. In my case, I acquired these assets in my name, got the financing with my signature, and executed a quitclaim deed conveying title after the fact from me to my LLC.

@Dion DePaoli I appreciate your taking the time to weigh in.  I've been lurking a bit before now, and you clearly take time to craft your responses.  I took no offense, and didn't feel picked on.  I thought I was asking a pretty basic question, but clearly this is a complex set of new regulations.  

@Mike Hartzog , you addressed my primary concern very clearly:  how do I steer of trouble.  Appreciate it.

Jim

Thanks to all who responded.   @Mike Hartzog , I certainly plan on hiring a servicer when I acquire these notes. 

@Dion DePaoli , I can appreciate your commentary regarding certain people who "Dodd Frank" this or that in an effort to sound more knowledgeable than the next guy. My concern really was what I need to be concerned with when (a) I buy a performing note, or (b) I buy an NPN and want to evaluate and propose workout solutions with the borrower.