All Forum Posts by: Tim Criswell

   Do you think it has anything to do with banks buying banks at pre-foreclosure sales these days?...  

I've heard very successful RE investment mentors say that there are an infinite number of ways to do a RE deal. The method you suggested, sounds very interesting. "Trust, but verify"-Ronald Regan  I hope that quote doesn't get this deleted for being political. 

 Thank you Chris,

This one is late in the game. In 2015 I stopped a sheriff sale with just a 3rd Party Auth. letter while the seller and I completed the SS package. At the time, it was so systemized that it was useless to speak to a human. All they could do was to bring it up into the system to tell me it was pending. 12 months almost to the day, and two appraisals later, they accepted 50% of my original offer. A broker I know said it would probably be easier to buy it directly from the bank. And when I enquired about doing a short do to the situation, they didn't direct me to any links to a SS packet.

I've seen some of the houses that don't get bought at the sheriff sale get listed on auction dot com. If I can't get it through the bank, I'll see if it ends up on auction . com. And there are plenty of other properties to do what I want to do with them.

Would you by chance be able to help me or direct me to anyone that can about buying RE with an SD-IRA with checkbook. Or loaning money out of it to other investors. I'm aware of all of the arms length t-actions. I need to know more about loaning it, than investing it. Or if anyone that reads this can help... The door is open.

So thanks for letting me know what banks present attitude about SS's is Chris. I'll put my efforts into finding other ways to help banks offload their unresponsive assets at a less cost, or faster pace than the online auction(s). Just not with a process that has been kicked down the road farther than I want to go retrieve it. 

 Thank you for that information Minna. I'll see if I can get the to cooperate with me. 

I'm in Illinois should that help anyone. I'm not asking about any laws or legal advice. I happened to run into a perfect short sale situation on a pre-foreclosure property, similar to the SS deal l did 5-years ago. It's even the same bank servicing the loan. But the process of stopping the sheriff sale so the bank can receive and consider my offer is completely different. Does anyone know if banks still consider SS's? Any info. will be greatly appreciated. Or have banks found a legal and less expensive way of unloading non-producing assets, than by selling them on the court house steps,? ( i.e. Auction dot com? )  Removing a key motivator for the bank/investor to consider a fair offer for the value of the property, instead of the total remaining debt of the bill, and not receiving any of it. Tell me what you know, that I don't please.

Thanks you for adding that tax info. about flipping with an IRA Brian. I was aware of the tax advantage of holding for a year but was thinking my IRA wouldn't need that strategy. I need a new CPA. One with real estate investor clients and familiar with SDIRA-LLC's with a checkbook. The one I have now thought SDIRA's were illegal and has colleagues that do also. Especially with a checkbook. (He's corporate by profession.) So thanks for keeping me from the sudden and unpleasant surprise.

Disregard that question. I found some online articles about it that answered my question after I posted it.

Is it "IRS legal" to buy a distressed property with a self directed IRA-LLC, hire a contractor to do all of the rehab., hire an atty., a realtor and other third party services to process the documents, and put every penny of profit back into the IRA the money came from without disqualifying my IRA? And if the answer is yes, is the line to do it properly/legally so tight, that I'd be better off doing it with funds that won't get the tax benefits?

I read some good advise in several of the above replies. I've finished 6 floors while I was rehabbing them. From that experience, from dust control, (including HVAC) renting good equipment, the labor of getting it and returning it, and learning all of the things not to do with a piece of equipment that could destroy it in a short amount of time, if it's ultimate effect isn't realized and respected. Once hardwoods have been sanded down so far, they have to be replaced. Having learned what I learned through the 6 I've done, if I'm going to rent it, I'll find an economical covering that won't permanently damage the hardwood and keep it as an option later. My experience is hardwoods help sell houses if they are in nice (used gently) condition or better. I just sold a small 2/1 with the livingroom and 2-bedrooms in hardwood that I refinished so I could stain it darker with walnut. It must have worked. I got 9% over market value for it, and didn't have to list it or put a FOR SALE sign in the front yard. Is that considered (-1) days on the market... My bottom line is, protect hardwoods if your going to rent it and make them beautiful (professionally or personally) to sell it. JMHO Good luck with whatever your decision is.

Thank you for that info. Wayne.