All Forum Posts by: Scott Nipp

OK.  I think I'll leave this topic alone until it becomes more imperative that I actually dive into it.  Right now my brain hurts.

Which is a better strategy? Say for example I need $25k to close on and rehab a property. The net profit on the sale of the flip is $50k. Would I be better off putting $5k out of pocket and $20k from the IRA into the deal up front and then taking 20% or $10k as profit on the deal or just taking the entire $25k from the IRA and taking a disbursement of $10k from the IRA?

I'm just trying to get an idea as to how to best leverage the IRA for our future investing.

We are going to be setting up a self-directed IRA sometime down the road. My understanding is that all of the profits from an investment you can contribute back into the IRA with no limit. My question is do you HAVE to deposit ALL of the profits back into the IRA or can you keep some of the profits as cash for other immediate uses like living expenses, etc.?

Just thought of another clarification...

I assume maintenance, repairs, upkeep is all the responsibility of the individual you are selling the property to via owner financing?  This makes the numbers easier than a traditional rental in that you don't have to account for these expenses.

Another question... I assume that I would be responsible for the property taxes and this is probably covered in the Sub2 contract, but does that entitle me to use those property taxes on my income tax filing or does the original owner still retain that benefit since the mortgage is in her name?

I'm about half way thru listening to podcast 70 on Sub2 financing deals and find it really fascinating. I have a distressed home owner that I was trying to work with a few weeks ago but we couldn't get close on the numbers for a flip or rental. I'm now thinking that a Sub2 deal might be a winning strategy for her situation. However, I have a couple of questions...

1.  Anticipating her question:  Since the existing mortgage stays in place in her name, what happens in a couple of years if her situation improves and she wants to purchase another house?  Would she have a problem obtaining conventional financing for a second home that would be her primary residence?

2. Assuming that I were to close the Sub2 deal and then owner finance to a new occupant, who is responsible for the insurance on the property?

3.  If there is significant equity in the deal I understand that I could structure the owner financing to require a significant down payment to "cash out" some of that equity.  Is it also a viable strategy to simply recoup that equity on the back end of the loan after the existing financing is paid off?  Or is this just simply a bad idea?

I'm sure that I have more questions but I'll start there.  Thanks in advance for any feedback.

OK. We now have our LLC setup and we want to start establishing and building corporate credit for obvious reasons. Anyone have any advice on establishing corporate credit? Anything to steer clear of? Any recommendations on companies that work well with new LLCs to obtain corporate credit?

Thanks in advance for any input on this topic.

Welcome to the community @Greg Carr .  There is tons of great information here.  Good luck with getting started on the Fort Worth side of the metroplex.

Morning @Alan B. .  Good to have more local blood on here.  This place is a gold mine of information.  Dig in.

I think @Carolina E. probably has your best option laid out for you. If you can line-up a renter then going the Sub2 route seems like it might be a great idea. Obviously that is going to depend upon the PITI and what the rental comps in the area look like, but if it's good enough even if the renter can't cover the back payments it could still be worth it to pay it current and then recoup that money on the cashflow.

Good luck with it.  Keep us informed as to what happens.

No first hand experience here, but in a seminar we took they were very specific that in Texas the right of redemtion (I think that's the proper terminology) is up to the minute of the sale.  Now, as others here have mentioned, it may be challenging to get the proper party at the lender involved to close the deal, but I think you should be able to make this happen.

Unfortunately, having posted this on a bank holiday means that you would have to deal with this probably at the courthouse steps this morning.  No clue as to how that would work, but an attorney would probably be your best chance to avoid having to bid on it at the auction.