SB 1995 would also require the disclosure to be provided in a language other than English if the wrap loan was primarily negotiated in another language.SB 830 (Rodriguez) requiring all seller-financed lenders give borrowers annual statements that include how much money was paid and is still owed on a loan.

@Steve Snyder, we charge interest only on the principal disbursed, just as you are describing. 

-You must reinvest 100% of equity or pay tax on difference which is called Boot Type#1-If you borrow equal or higher amount of loan than you paid back, no boot or tax If you borrow less than you paid back, you owe tax on the difference of loan amount which the form of Boot #2Dinesh

However, you have to follow a few design principals since the boxes get shipped down the highway.

Would principal be included in the holding costs?

Is the payment principal and interest, or does it also include taxes and insurance?

Essentially take your actual loan payment and annualize it then divide by the principal.

If you do not need the money and do not want any benefits from it and the tax deferral is needed and you will not owe anything to the IRS, then I would not use that account eventhough that is your money you will give up a little control but, you will probably owe less fees on your money.  

My goal when I first started was properties that "broke even" after 5 years - ie, as a cash buyer, I would have all principal returned after 5 years.

The question is: if I take the initiative and remove the exemption, would I have to end up paying for all the texas that the previous owner owed?