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<<<What have you done in your real estate business that made it possible to take 9 months off (mostly)?>>>
Jackie,
It’s applying the things learned from people like you, Miller, Schaub, Fortunato, etc.
My real estate has never been much of a “business” in the business sense, but more of an investment activity. One can spend a lot of time in things like heavy buying and selling, rehabbing, etc. Or one could just get rentals or joint ventures in place and watch them grow. Management is easy, most always done on the phone. I’ve got back up people for new rentals, should I need that, but a lot of my deals are hands off where I let someone else do the work and I put up perhaps a bit more money, so really nothing to do.
I hire most everything that needs to be done, except the initial rent up, but have trusted people that can do it. Even in rehabbing, I don’t touch a hammer or pick up materials, but it can still be time consuming. Don’t have any rehabs for now.
I’ve never worked real estate full time, so I could always take some time off.
First, I could argue to have a power of attorney so you have owner privileges with banks, etc. Just easier.
Second, if you pay off the lein, have them send YOU a satisfaction and YOU record it, then you know it’s done. Should be an issue. The originator doesn’t have to be in the picture, just the lender.
Jackie, I’ve had a few times when the lender did not send anything to anyone, until I asked for it, but was easy.
That’s a really good post and food for thought.
Yes, I’m talking off 9 months in 2018 to take my boat around the great loop. Easy to keep up with things via internet and email, and I’m almost 100% paperless, too (but you never get there). I’ve got some real estate friends that do the same. One guy has done this three times, working from his boat. She drives while he works and visa versa, works great and they take every other day off to enjoy the sites.
I like that profile.
And, heck, if there were a bit issue, just fly home for a few days.
Looks like some grey areas.
If the money person is a lender, it could be argued that this doesn’t apply. The jest of this looks like a situation where one is putting money up with the expectation of making money down the road that may or may not happen. A mortgage clearly is not the case. And an option could be argued same.
I could argue if an investor got a money person to put up the money and promised him half of the upside on a rehab/flip, there could be some issues.
Now, is one solicits money for mortgages or anything, they may be under other FTC rules, so one has to be careful.
Also, if one has good established money people that understand, and you take care of them, there will not be an issue no matter what you do.
Thoughts?
Turbine,
You can wrap a sub2 with seller financing, but there’s always the risk that the underlying note will be called, but very rare. I could argue to not call attention to yourself with the underlying note holder, however, if you keep it current, the chances of them calling it are rare. I would argue to put the property in trust for this transaction.
Now, if you want your cash out, there’s an argument for a short note, but in that case, there’s a stronger argument to just do a lease option (or contract for option…. safer) and let your tenant get their own financing. The numbers “could” be identical to the above, but gives you more protection, and is easier.
Now, if you have little in, and are making your money on the spread, you may want it to continue forever, and that works, too.
Jackie,
I hear ya, and thanks much for the comments.
I never liked rehabbing either, but there’s opportunity there, and that’s why I’m doing it. These REOs and Shorts are cash only but are so cheap and reasonable profits with little work (for me). I also have a few lenders that are currently lending on these, so not hard to flip, and at close to retail.
But, yes, I rarely like more than 2 or 3 of these at once, just in case.
And the bulk of my stuff is buy and hold, and the vast majority is seller financing. I rarely finance my buyers, but occasionally do, and will give them lease/options (contract for option).
But, I like ideas. Thanks again.
Jackie,
Hi, first have a great turkey day… that’s most important.
I’d like to see some discussion on rehabbing. A conference call would be nice. Better yet, perhaps would be a subtitle under forums, as my Tue nites are tied up.
While I realize Jack didn’t do a lot of rehabbing, there’s a few of his students that to and with all the bank properties lately, a lot of us are doing more.
Food for thought. (I’ve also posted a topic on the same to encourage some discussion.
