All Forum Posts by: Kevin Kaczmarek

Its happened to us in 2009 when properties were being deeded to us in Detroit. We have been offered it since then but have turned it down. No upside and alot of potential liabilities that are not worth the risk of a small profit with company assets on the line.

Thanks for the input Bill.

Any land contract note conferences that you would recommend?

I posed this question in one of the groups, and wanted to get insight from the BP community as a whole to see what experiences people have had investing with a Solo 401k. Being able to contribute $46,000 to a retirement plan that allows you the flexibility of investment vehicles is exciting.

We always come up with a catchy movie title for the property. I remember we first did this when the movie "Little Miss Sunshine" came out. We titled an ad with that exact name, because it was a small "cute" house and we must have had 120 email responses to that property in the first 24 hours. Needless to say, the property moved very quickly and we have used that strategy since.

Hi, can anyone provide a review of their experience of a Noteworthy Conference? I am considering attending this year to expand our note buying side of our business. Any insight would be appreciated.

Working out, Playing Texas Hold-em and Watching Sports are all my hobbies, although somehow they all tie back to business or making money come to think of it. Oh well! Such the nerd I am!

Chris,

To answer your questions, we use Kroll factual and background check software. Background checks for tenants, and factual for credit scores. We signed on with Kroll to report payment history of our buyers as well, so they can show payment history on our contracts, and we have a third party record of our payment history. Its costly at $2 a payor per month, but in the long run it is worth it. We use our title company to prepare all the land contract closings, and we have our attorneys review the "closing packet" to ensure its in RESPA compliance. We are now working on the new Michigan SAFE ACT requirements that are coming down at the end of this month.

Our typical terms are contracts less than 10 years, $500 a month P&I, and no less than 20% down.

I hope I answered em all. We have had to learn a lot over the three years we originate contracts, namely the paying taxes part as a dealer. That part is NO fun!!
Remember, if you are classified as a dealer on land contract sales you pay the tax on the gain in the year of origination.

Legal is much more approriate than private funding, as private funding is but one component of using your SDIRA to invest. I think the more knowledge we can spread about this topic the more investments people will make for their own retirement, as a forum could help unlock the mysteries of a Self Directed IRA.

Josh,

I think it would be great to add a section on the topic. I think there is not a lot of discussion on here about it, because there is not much solid information out there. With that being said, such a forum could help bring clarity to investing with this tool.

It very well could trigger the due on sale clause. In the economic conditions we are in, it would be an unlikely occurance. My recommendation is see if he can get his attorney to review his mortgage papers to see what exactly would trigger that clause. A good contract attorney would be able to advise him on that, and then I would recommend you have your attorney review the same.