A few months ago, I had the good fortune of meeting Chris Michaud.
Chris has extensive expertise in many areas of real estate, including (but not limited to) coaching investors, brokerage, marketing, residential rehab, land development, multi-family, private lending, options, leasebacks and more.
When I first met Chris, he told me about a fascinating strategy he has used to close deals with a creative financing instrument called the Lease-Option Purchase Agreement. I’ve known about Lease Options for a while, but he helped me to see some of its new applications, and why this strategy deserves some air time here on the REtipster Blog – because it can be an extremely beneficial tool for both parties in many real estate transactions.
Many people fail to recognize the incredible benefits of this type of agreement at first glance, but this type of creative financing arrangement that can be a game changer for many real estate transactions.
Chris was kind enough to put together a guest post explaining the basics of how they work, so I wanted to share it with you today. Take it away Chris! [click to continue…]
In 2008, the U.S. Congress and President Bush passed the Secure and Fair Enforcement for Mortgage Licensing (commonly known as the “SAFE Act”).
The SAFE Act was part of the larger Housing and Economic Recovery Act of 2008, which came in response to the subprime mortgage crisis that unfolded around the same time.
The idea behind the SAFE Act was to require all 50 states to implement a Mortgage Loan Originator (MLO) licensing and registration system as a way of having a uniform licensing standard throughout the United States.
The SAFE Act was also intended to create and maintain a centralized public database containing all the relevant information on MLOs throughout each state. [click to continue…]
Almost every day, I get emails from people who are VERY interested in real estate investing, but they have no idea where to start.
To a lot of folks, owning real estate as an investment sounds really cool – but the idea of buying a book, investing in a home study course or hiring a mentor to “learn the ropes” is WAY more work than they want to deal with… because let’s be honest – it’s not easy to learn a new business from square one.
When I hear from these people, they almost always fall into one (or more) of the following camps:
- They’re looking for a way to diversify their retirement savings and/or passive income WITHOUT over-complicating their lives or building a new business.
- They have thousands (or maybe even millions) available to invest in something, and they’re looking for a better place to park their cash than a boring, slow-growing mutual fund.
- They’re smart enough to recognize the fact that it takes a significant amount of time, education and endurance to find great real estate deals. [click to continue…]
Back in 2010, President Obama signed the Dodd–Frank Wall Street Reform and Consumer Protection Act (commonly known as Dodd-Frank) into federal law.
This legislation came in response to a massive economic downturn, which was partially fed by the irresponsible lending practices of some, which ultimately led to a great deal of financial hurt for many.
At the time, many people in the real estate investing community started recognizing that this legislation was going to introduce some significant new restrictions that would cause major issues with their ability to sell properties with owner financing.
I still remember seeing forum discussions, blog articles, emails and social media posts from people who were freaking out about these changes – because for many of them, it was about to alter their business in a big way. [click to continue…]
The first time I started looking at buying investment properties outside my home state – there was something that got me really confused.
You see… when I started my business, I had formed my LLC in the state of Michigan.
After researching how to do business other states, I started to get the impression that I needed to register my LLC as a “Foreign Corporation“ in any jurisdiction that WASN’T the same as my home state.
Given that my business entity, physical office, bank accounts, mailing address, phone number and every other property I had ever owned were ALL in Michigan, I knew I was covered in my home state – but what if I wanted to start flipping properties in other places like Ohio, Arkansas or Oklahoma? Was I required to register my Michigan LLC as a “foreign entity” in each one of these states before I could do anything there?
…and what if I DIDN’T go through these motions? What would be the consequences if I failed to comply? [click to continue…]