All Forum Posts by: Todd Tinker

Hello Chad, if that is the case, I am doubly-thankful that I live in North Carolina : ).  I saw where the posts were concerning Florida, Texas, Ohio, etc. so I was worried that this was a national phenomenon!

I need to add that in North Carolina, you have to place an "upset bid" of 5 % of the foreclosing lender's opening bid amount for a sheriff sale's courthouse auction. After 10 days, if there are no other upset bids, you have legal control of the property and usually are required to close on the rest of the monies owed to the foreclosing lender within 30 days. In the past I would market the property to my cash buyer's list and usually use their money via a double-closing to transfer my legal interest in the property to them and give them legal title. So.....is this type of wholesaling illegal now and if so, why hasn't any of my closings attorneys warned me about this??!!

I have been wholesaling properties in NC for 10 years without a license with absolutely no problems. However, I  do not deal with distressed or motivated sellers. Instead, I purchase properties at the sheriff sale auctions at the county courthouse and I have sold many of my properties thru the years via assignment or double closings to other all-cash investors. I sometimes fund the deal myself and take title to the property before selling it but usually I use the cash buyer's money to purchase the property for 5 minutes and then sell to him via a double-closing. If the law is cracking down on unlicensed wholesalers such as myself, wouldn't this technically make double-closings illegal? (I am confused as I have never had a closing attorney give me a problem concerning a double-close transaction).

Thanks to all of you for your advice and for clarifying that for me. 

I have been reading posts and learning from this website over the past few months and this is my first post! My mother-in-law is retired now and she has a 403B retirement plan with her former employer that is drawing peanuts for her. I have spoken with her about letting an IRA custodian switch her retirement plan into a SDIRA which I would then borrow from the SDIRA plan for my real estate flips and pay back the SDIRA the principal balance borrowed and 12% simple interest every time that I flip a house to an end buyer. My question is would this be considered prohibited transactions by the IRS since I am technically related to her by marriage? Of course, only the IRA custodian would handle the distribution and reinvestment of monies borrowed so every transaction would be "arms length" as required by the IRS. Thanks in advance for any advice given on this subject!

I have been reading posts and learning from this website over the past few months and this is my first post! My mother-in-law is retired now and she has a 403B retirement plan with her former employer that is drawing peanuts for her. I have spoken with her about letting an IRA custodian switch her retirement plan into a SDIRA which I would then borrow from the SDIRA plan for my real estate flips and pay back the SDIRA the principal balance borrowed and 12% simple interest every time that I flip a house to an end buyer. My question is would this be considered prohibited transactions by the IRS since I am technically related to her by marriage? Of course, only the IRA custodian would handle the distribution and reinvestment of monies borrowed so every transaction would be "arms length" as required by the IRS. Thanks in advance for any advice given on this subject!