All Forum Posts by: Jon Tarr

Yes,

Here are the steps:

1. Have the homeowner open a trust.
2. Deed the property into the trust
3. Close the A-B transaction with an attorney (I am in Arizona and use an attorney in Colorado)
4. B-C Title Company communicates with Attorney to send the payoff.
5. Deal gets paid off and you get the difference.

I have used option contracts and a trust and I LOVE THE TRUST! Would not do the deals any other way.

Jon

Hi M,

I started running into this same problem awhile ago. I pretty much have stopped doing B of A deals, and with Wells Fargo, I just put the offer in my personal name.

Some people will tell you not to buy things in your personal name, but it has never been a problem for me. Not ideal, but not a problem.

My accountant had me open a seperate bank account with both my personal name and the LLC. I use this account for all the expenses and profits and it should come out in a wash. (Not an accountant however.)

Good Luck,

Jon

As an experienced real estate investor, sometimes I forget what it was like for me when I was starting out. Although I remember starting out, I don't remember many of the details and thoughts that were going through my head. I joined this forum so that I could help others, hoping that it turn it will help me.

This makes me curious and these questions are for all new investors out there, or investors that are not currently doing this full-time.

What is the biggest problem you face that you believe keeps you from getting started?

What do you want to achieve from Real Estate Investing? (What is your why?)

Based on the limited info you provided I agree with Tom.

Banks typically will take anywhere from 70% to 80% of ARV on a home. (And this is a good price)

I have been involved in hundreds of short-sales and retail liquidation is the best way to profit from them unless they are rough.

Tom is correct, looks like you have a great opportunity for a Subject To deal.

Good Luck

Mark,

Since the forms you need are pretty basic I would just google "legal forms" and go to a website like Legal Zoom or another similar site. You can request these forms be state specific and it won't cost you over a hundred bucks.

Dee,

You don't mention what your exit strategy is.

If it is a buy and hold then here you go:

Hard Money lender will do their own appraisal / evaluation on the property to determine what they will lend.

Purchase the property in your name, then refinance, and AFTER your refinance you will Quit Claim to your LLC, must like the previous poster replied.

My question is, if you are buying from the lender, why take it down with hard money, why not extend the close and save yourself some fees and interest charges?

Bryan,

I am originally from Indiana and I have a friend who could give you a ton of good information on Rent to Buy deals. In fact, his whole business is dealing with clients looking for a rent to buy home. He won't charge anything and has lots of good info. Let me know if you need his info and I will get it to you. He is in the Westfield area.

I love Eric's reply! Tony Robbins says that

MASSIVE ACTION = MASSIVE RESULTS!!

All the other stuff in the world won't help. You have to get out there and do it. You will make mistakes, and you will fail. That's OK, in fact that's part of the fun. Just go have fun, learn, listen, and take MASSIVE ACTION.

I think Jon and Don are right on in their posts, however as someone who was investigated by the Arizona Corporation Commission and the Attorney General. :)

Yes, that's correct, investigated, but not sued. Here is the best piece of advice that I can give.

Relationships don't matter! When things go bad (and they will in some instances) you want to protect yourself with disclosure, disclosure, disclosure. The only way to do that is to contact an attorney in your area who SPECIALIZES in SEC regulations. Peroid!!

When the SEC or any governmanet agency comes after you, they do not care about anything other than disclosures, and in order to get the right disclosure you have to speak with an attorney who KNOWS these organizations.

It's not cheap, but if you are putting a worthwhile project together it is worth the money.

"An ounce of prevention is worth a pound of cure"