I wasn’t able to go to Walter Wofford’s Small Dollar IRA seminar recently, but I did see a table of contents or something similar to suggest that one of the ideas discussed was the idea of buying future rents from a landlord out of an IRA.
What kind of paperwork would you think you’d need to do that? Just guessing, but promissory note and deed of trust?
Does CashFlowDepot have a resource somewhere that I haven’t found that talks about this type of thing?
I agree with Don, I would do an assignment of rents secured by an Option and record the option or record a deed of trust to secure the option.
Think about what provisions you would include if the property were vacant.
What if it got torn up by the tenant and the landlord did not have the funds to repair (could be another opportunity with a right of first refusal to get a big chunk of the equity with another IRA investment)
What other rules, like no section 8 tenants, etc. Pets?
One thing I would NOT do is attempt to take on something like this for an out of town property. You need to go see the property and be readily available to see what’s really going on instead of relying on someone else’s eyes and ears.