All Forum Posts by: Mike Mitchell

I have read about the process online but would like to discuss it with somebody who's in the game up there. I bought a land contract and clearly the occupant has no intention of making any further payments so I need to figure out the most expeditious and cheap way to get rid of her.

The smaller businesses were my immediate concern. I suppose if I were doing a number of these I could negotiate some way for the leasing agent to compensate me when a small business goes out, otherwise I wouldn't purchase their next lease. Do you have any idea what sort of discount the income stream is sold for in the riskier, small business market? These are four year leases at $149/month

I've been approached by a company which purchases equipment and leases it to businesses. The company is wishing to sell the receivables, pay commission to their salesmen and keep the balance. I'll be glad to move the question, I just thought some guys in the note business might have experience with it.

It's not real estate but it is an income stream. Does anybody have experience buying this sort of payment stream? I would like to visit if you do.

Thanks guys,
John, I'm with you on the recent sale price. The land is in an area of town where not much development has occurred but the area is growing quickly. This makes appraisals even trickier in my book because this is the leading edge of the development. If I'm hearing you right you guys would be ok with the interest rate IF the land is worth it. The developer has quite a bit of land in the area and is offering several plots as collateral. This helps the LTV greatly and I would be in 1st position on all of the collateral. I will take the advice on the draw schedules to make sure that the money actually goes to improving the property

A developer has approached me about borrowing $200,000 on raw land. He recently sold a tract next to it on the same freeway for $450,000. I'm not so concerned about the LTV as I am about the fact that it's raw land and is not worth much unless a buyer show up with funds. The developer plans to use the $200,000 to install water lines, sewer lines and for clearing the land of brush so that it's more marketable. I'm looking in the range of a total return of 33%/yr. The developer wants the funds for 15 months. Should the return be much higher on such a speculative venture? I realize that the land could sit there for years with no buyer showing up, I'm fully aware of my risks here. I'm just wanting some thoughts from some guys who have done HML's on raw land.

Bill, I've wondered the same. A realtor friend of mine is a very successful realtor/investor. He often says that he doesn't understand why all realtors aren't rich because he sees so many opportunities. It seems to me that most realtors are only focused on the commission check and are not getting very creative in doing deals!

Thank you Steven and Ned! It sounds like I might arrange to pay myself a salary out of which I can fund my self-directed 401K. The 401K, which I have just opened will be a Roth.

My accountant reported my interest income from my mortgage note portfolio as interest income with no schedule c. Could I lower my tax liability by reporting the interest in another way? This came up because I had another accountant, who specializes in showing persons how to lower their taxes, take a look at the return and he is telling me that it's possible to pay less in taxes (if I pay his fee of course). The notes are owned by my single member LLC. There was only one return prepared by my accountant with all of the LLC's income showing up on my personal return.

That's funny! Maybe I should read their forms more carefully.