All Forum Posts by: Randy Cheval

Hi anyone with a recommendation for a tax expert experienced with handling proceeds from a lawsuit involving defective building material. The property is a 4-plex. The proceeds are for damages caused from a Chinese Drywall class action lawsuit. Most tax folks with experience on this topic would likely be out of Louisiana or Florida. 

Thanks 

Darnell, were you able to find a good tax attorney for your redemption? I've invested in tax liens in New orleans but none of mine, to date, have gone the distance needed for me to file for quiet title. I have, however interviewed an attorney that specializes in this area and I intend to use him if any of my current liens go un-redeemed. PM me if you want his contact information.

randy

Hmm, That's not really worth it to me. I think I need to try to think of another approach.

I'm selling a lot to someone that wants to buy in installments because they don't have enough cash today to buy.

I'm willing to sell on time and carry back a note and was wondering what you guys suggest for an interest rate.

They will put down $3,000 and I will finance the remaining $7,000 over 1 or two years. Purchase is for a vacant lot next door to the purchaser.

What interest rate is typical for this?

After talking to the title company I plan to use, I have this update. When selling and carrying back a note, 

a) I complete a standard Louisiana purchase agreement and specify the terms in the standard agreement. there's a section for it.

b) take the signed purchase agreement to the title company and they will prepare all necessary docs for the purchase including a promissory note for the loan. 

c) after closing, I get the note, they get the deed. The title company will register everything that needs to be registered.

d) the title company is also happy to charge me for a "lenders" title insurance policy.

thanks @Ryan Pettitt. That was very helpful. I'll go that route, and find out if I need an attorney to close.

RE:

Was this through a civic source sale?

Yes, this was thru CivicSource.

Also, to clarify, I'd use a standard purchase agreement for the Louisiana area. The property was adjudicated.

So from your comments, i have:

1) I need to record the purchase agreement regardless of the type of conveyance. 

2) use an Attorney or a [good] title company or title agent for the paperwork

3) Regarding the decision to sell and carry the note, or to sell on installments may have tax implications. Regarding paperwork, would I need a custom agreement worked up for an installment sale or is there standard paperwork I can use? Or if I did a lease option, what paperwork would I use then?

thanks all

I purchased this lot outright. I'd previously purchased tax lien certs in Louisiana. I'm very familiar with purchasing tax lien certs in Louisiana. This is different. There was recently a revision to how municipalities could collect overdue RE taxes due to the number of properties where no-one bought the tax lien. I closed on this purchase with paid title insurance.

I'd like to sell vacant land in Louisiana that I purchased for cash at a tax auction. I have a buyer that wants to buy in installments (They are a neighbor to the land and don't have enough cash for the full purchase price). I've not personally sold or purchased property this way before. 

The property was cheap and there's not much margin -- I bought for $5,600 and am selling for $10,000.

I'm thinking of financing the deal and holding the note at maybe 10%. Or I could do an installment sale where they essentially rent to own. I will use a standard RE purchase agreement for my area.

A few questions:

1) I'd like to use the standard lenders/purchaser agreement for my area (i need to find it), and I know that I'll need to record it, but is there anything else I should be aware of?

2) I'd like to not use an agent and instead use a title company for escrow and making sure all ducks are in a row. Is this reasonable?

3) if I instead sold in installments, is there typically a standard form that I should use to protect me and the seller? would I need to get a custom contract drawn up? Typically, when doing an installment sale, does the seller (me) charge "interest" on the outstanding balance, or would I simply mark up the sales price to some fixed amount (which of course can be calculated using a target interest rate).

thanks.