[Curtis Frieden]

Curtis Frieden

Thanks Dee,

I believe that those loans are for existing businesses and to pay payroll. In my case, the loan is being used to acquire the business in much the same way you use a mortgage to acquire a property.

We actually reaches out to the SBA agent directly to get confirmation of the requirement.

[Curtis Frieden]

Curtis Frieden

Hi Jackie,

Are you going to be providing a recording to this call?

Thanks!

[Curtis Frieden]

Curtis Frieden

Now we’re getting somewhere!

Here are the numbers that they would like. We haven’t discussed monthly payments yet. Still up for debate.

Purchase price is 150K. There are only 48 units currently but lots of land as mentioned.
They are going to want some money up front, probably around 15K.

They ultimately would like the full 150K paid to their heirs. Assuming they pass before 150K is paid off, is it possible to continue to pay the heirs until the 150K is completely paid off?

I think that is the desired scenario. If we can’t accomplish that, probably the seller financing deal but I’m sure everyone here would love to avoid paying the taxes as well 🙂

[Curtis Frieden]

Curtis Frieden

Hi Jackie,

Any particular reason you would go seller financing here instead now? If it’s a matter of waiting a bit of time for the bank to be able to finance expansion, we’re not opposed to waiting. It cash flows just fine as is.

Another new piece of info is they are fully willing to deed the property to Jamie’s Mom and then have her deed it to us if that makes more sense from a tax perspective. Would that make any difference?

I realize I should talk to a CPA for some of the tax related questions but my current CPA wasn’t very helpful with ideas so I’m in the market for a new one :).

[Curtis Frieden]

Curtis Frieden

Thanks Jackie,

I had thought about the master lease scenario but not with the life estate deed. That could be a great option.

A few more details:

They do have a purchase price in mind.

They would like some cash up front. We’re still in the process of figuring out how much that will be.

There has also been conversation of us continuing to pay the trust or whatever (they haven’t determined what exactly) upon their passing until the total amount has been paid.

Given that, do you have any further suggestions on how to structure that deal?

There’s also a LOT of land with this sale that hasn’t been developed yet. We’re thinking of adding more units and developing slowly but surely. Assuming that we do, if we ever wanted to get a commercial loan for the improvements, would we be able to under this scenario?

Thanks for the guidance!

[Curtis Frieden]

Curtis Frieden

That was another option we were looking at. the only thing that dissuaded me a bit is cost to install. My flooring guy says that will be about double the price than a laminate and if I ever were to put new flooring in, demoing the tile would be a costly nightmare, wouldn’t it?

Totally agree on Vinyl, I’m not really into it but someone suggested it so figured I’d ask.

I was initially leaning toward laminate but your input is getting me thinking tile again.

Thanks!

[Curtis Frieden]

Curtis Frieden

Thanks Jackie – sounds like those are ones to avoid until I get more experience

[Curtis Frieden]

Curtis Frieden

Thanks for the very detailed response Jackie!

I’m looking at the different packages from realquest here, http://express.realquest.com/plans/pricing.aspx

Which package do you recommend and which data points do you search for to create your list?

Thanks!

[Curtis Frieden]

Curtis Frieden

That’s a page that I’ve come across but it looks to me like the property owner info is protected and not displayed. They simply show a parcel number.

Here’s a random Irvine address that I used and the result I got for 17 Moonray Irvine

http://tax.ocgov.com/tcweb/search_parcel.asp?streetname=17%20Moonray&t_city=IR&t_parcel_no=46349141#

Unless I’m missing something, I think I have to go in to get the owner info or subscribe to propertyshark, right?

Thanks for pointing out the tax default properties. That’s a great resource that I missed!

[Curtis Frieden]

Curtis Frieden

I’m in Orange County, CA

[Curtis Frieden]

Curtis Frieden

OK – unfortunately I think I’m going to have to get a property shark subscription then or go into the office to get the info. In the counties I’m looking at they only give a parcel number and no information on the actual owners online (unless I’m missing something).

Thanks for your help!

[Curtis Frieden]

Curtis Frieden

Yeah, I’ve called another title rep and they don’t do simultaneous closes at all so I’m on the hunt.

Worst case scenario is that I’m disclosing and as long as I position the deal as such, I suppose it won’t matter but obviously would prefer to not have to disclose the prices.

Not exactly sure who Archinio is or how to get a hold of him. Could you please point me in the right direction (I already did a search in the forums and didn’t find him).

Thanks!

-Curt

[Curtis Frieden]

Curtis Frieden

Yeah, I spoke with someone else at First American today and they said that I do have to disclose the prices to both parties…

If anyone here is from Southern California, do you have a referral?

I’ll see what else I can dig up.

Thanks for your help Jackie!

-Curt

[Curtis Frieden]

Curtis Frieden

Thanks Hank – That’s exactly what I assumed!

[Curtis Frieden]

Curtis Frieden

Great idea Don!

I was just thinking yesterday that I need to get some business cards as I was driving some neighborhoods.

I’m going to get some ordered today. Any recommendations on what the cards should say or if there’s somewhere in the depot that has that?

I’m thinking the obvious contact info on the front and on the back I but “I buy houses” on the back.

[Curtis Frieden]

Curtis Frieden

Beautiful!

I just looked up the code and was just curious, it talks about the act covering federal agencies. Would that mean that a state, or in this case city, still needs to abide by that.

I’m assuming yes based on your response but figured I’d ask.

Thanks!

Curt

[Curtis Frieden]

Curtis Frieden

OK – just went to my city’s code enforcement and asked for a list of properties with code enforcements. At first she said it was a big list but wasnt sure of they had an actual list of properties they could give me.

She went back and asked someone else and said that the only thing they could do is confirm if a property had a violation…

Not sure if I missed something but that’s the response that I got…

[Curtis Frieden]

Curtis Frieden

So if I wanted to get information on code violations in x city, can I just go to that office and ask for that or is there a better way to get that information?

How about for utility companies? When I go into the office, do I simply ask how to find a list of homes in x city that have dead meters?

Thanks!

-Curt

[Curtis Frieden]

Curtis Frieden

Thanks for your help – I figured most of this but wanted to post it and see if there was something I didn’t see.

I think my focus is going to be on what I set out to do, which is finding motivated sellers and wholesaling. This was just a deal that she mentioned so I figured I might as well ask.

Thanks!

[Curtis Frieden]

Curtis Frieden

Got ya – thanks!