All Forum Posts by: Chris Martin

All things being equal, the newer the better. At 20 years old, unless you price in EOL (end of life) systems (and appliances, HVAC, roof, etc.) you need to address these items. If the discount is the same, go for newer. Get a bigger discount with 10-20 year old property. Oldest rehab? 1972 for a condo. 1978 SFR. For obvious reasons (LBP.)

My understanding is that only commercial tenants would issue you a 1099. If you rent residential property, the tenant would not issue a 1099.

Creating the note is possible, it's what you can do with the note that is the problem. I did this several years ago with a multi-member LLC, where one member took out a D-T with the expectation he could later sell (after some 12+ months of seasoning) to a note broker/buyer. Same experience as Ralph and Steve point out. Your note buyer's market would only be a principal buyer who didn't care about the LLC/member association. Other possible options (trying to stay creative): get an in-law to lend via a SDIRA or something similar. Then refi and cash them out.

I've had the most success asking the neighbors, especially when there are obvious impairments to the property. Let them know you plan on cleaning the place up... and some times they will provide a ton of useful information about the property, the past owners, their kids, etc....

In a sense... I've bought property at courthouse auctions sight unseen from the inside. That doesn't mean I didn't do a site visit... meaning I would have picked up on this particular Sanitary Landfill scenario.

Isn't this process defined in the mortgage/deed of trust? Seems like the "rules" should be spelled out ahead of time and not on the whims of the trustee. In NC, for example, I've never seen this. Probably because state law and the sale process defined in the D-T are very exact.

Michael, I wish it were that simple. The problem as I see it is that "Withdrawn" doesn't apply just to the listing. I have a signed contract that is not being honored... and I don't think it is just me. These contracts are in limbo, as are the escrow funds held by closing and title companies.

I'm trying a similar type thing. It turns out that reporting TO THE AGENCIES is not practical. First off, as an individual you cannot report. Businesses only, which isn't in itself a problem, except they will potentially do a site visit. So virtual companies (no physical office) and LLCs without a registered office are out. Equifax, Experian, Innovis and TransUnion also require a Data Furnisher's or Service Agreement for reporting accounts. And then you need to report a minimum of 500 accounts per month unless you are a Bank or Credit Union. The short answer is that for a small operator with just a hand full of seller financed properties, let the buyer's challenge the credit reports and correct the information themselves.

http://www.metro2creditreportingsoftware.com/reportingminimums_requirements_creditbureaus.html

The simple answer is brokers don't work that way. Brokers get commissions (compensation) from listings. As far as "legal" goes, most likely you will not find the direct answer in your state's general statutes. See Title 54.1 - PROFESSIONS AND OCCUPATIONS under Chapter 21 - Real Estate Brokers, Sales Persons and Rental Location Agents Agents (http://www.dpor.virginia.gov/dporweb/lawsandregs.cfm) Also see 54.1-2105.2. Cease and desist orders for unlicensed activity; civil penalty. Basically it is applicable to many bird dog referral/compensation activities.

Why wouldn't the licensed folks try to get the listing instead? Well, they do. Around here, at least. Some brokers will call FSBOs and do a "hard sell" to get listings.

In my state (NC) agents can't pay referrals to unlicensed people... so unlicensed REI are out of luck. However, I would chalk it up as "working together"... and make sure that each party can help out with unpaid referrals so that both sides can benefit. No necessarily on one particular deal, but if the agent can some day refer you to a great deal, your overall benefit might be much greater than $300 here and there.