I recommend not using your real name. I did test out using a fake name. That was ok. Now, I just use a derivative of my real name. Why? I had a few people that were persistent, intelligent, and a little crazy. They would search for me on linked in and then email me with comments that were personal and creepy. Or, a couple of people searched and found my home address, and then let me know that they knew were I lived. One guy went to where my PO box is, to try to meet/confront me in person. The people working there had to deal with him and turn him away. On your mail, using a fake employee name, or a pseudonym is wise.
If you elect to treat it as a passthrough entity (as you probably should) the income will be passive (i.e. no se tax) and depreciation/interest/expenses should offset most if not all of the income assuming this is a residential property.
I don't know exactly how this impacts people like us when requesting a delinquent tax list, but in terms of finding sold comps, you're not going to have much luck in that state unless you have access to the MLS.
Justin Melquist, that's great! Just to confirm, though, those were two separate deals, for the $17.5k and the $35.5k, right? Otherwise, if you had offered that property at $17.5k cash, but ultimately sold it for $35.5k financed, I'm very curious what type of rate and term that was!
Means multiple people own a certain percentage of the property. All must sell their portion otherwise you just own that percentage and if it’s not income producing, you won’t make money and can only sell your percentage. Move on unless you can get all portions.
Mobile notary as Justin described has worked for me as well. Screen the notary for responsiveness and good communication to the extent possible. As soon as they fail in either category, drop them immediately and move on to the next.
Sometimes offering to wire funds instead of a check makes a Seller feel more confident about payment...no idea why, but occasionally it's helped.
I have not used this method yet, so cannot vouch for either service.
here's how safefunds.com describes their service:
First, Buyer and Seller both enroll for NO CHARGE, NO OBLIGATION Safefunds memberships.
1. Either buyer or seller enters the transaction into the Safefunds system. It is addressed to the other party.
2. Buyer and seller negotiate until both agree to the terms and conditions.
3. Buyer deposits the necessary funds into his Safefunds Account and commits the amount necessary for the transaction. Deposits are made by bank wire, electronic funds transfer, or check (checks must be drawn on a U.S. bank).
4. Seller sees the funds reserved for him. Seller knows the payment is secure. Seller sends the item or provides the service described in the transaction.
5. Buyer receives the item or service. Buyer releases the control of the funds to the seller.
6. Seller withdraws his funds from his Safefunds Account either by electronic funds transfer (inside the USA), international wire transfer (outside the USA), or by check.
BOTH buyer and seller have been fully protected. Buyer did not release the funds until he received the item. Seller knew the funds were secure, before sending the item; there could be no payment fraud or chargeback.
If a disagreement arises, the Safefunds system includes complete dispute resolution service.
The transaction fee is: $38 for transactions less than $2,000. $58 for transactions from $2,000 to $3,999. $78 for transactions from $4,000 to $6,999. $98 for transactions from $7,000 to $9,999. $128 for transactions from $10,000 to $14,999. $158 for transactions from $15,000 to $19,999. $188 for transactions from $20,000 to $27,999. $228 for transactions from $28,000 to $34,999. $298 for transactions from $35,000 to $48,999. $438 for transactions from $49,000 to $99,999. $648 for transactions from $100,000 to $169,999. $888 for transactions from $170,000 to $239,999. $1188 for transactions from $240,000 to $299,999. Additional amounts, $400 per $100K plateau.
The fee is deducted from the amount the seller receives.
Our acquisitions tend to slow based on slower response times from title companies, notaries, etc. However, we sell them just the same. People seem to be prepared to spend money around the holidays. Not sure how it will turn out this season though!
Biden wants to increase capital gains tax, do away with the 1031 exchange, and do away with pass through losses (ie losses from your rental real estate can no longer be used to offset your ordinary income). You tell me if that sounds good for real estate investors.
Daniel Bear and Quinn have been staying at my house for the last two weeks or so and it has been AWESOME having them as co-workers and guests. The usual routine is exercise/breakfast then a solid day of working on the land business in a shared office followed by some local exploring.
We have gleaned several tips and tricks from each other since we're working side by side. The funny thing is that some things that seem like minor tasks that I do have a big impact on Daniel and Quinn's business and some things that they don't even realize they're doing have had me rethinking my business as well.
It's just been an awesome and rare opportunity to spend some time with a high performing land investor since this business can be very isolated. If you've got a little extra space in your driveway and office, I'd highly recommend taking some time to meet up with these guys.
John, I had not heard about this option to have Zillow reps field questions about your listing. Do you know what it costs?
Edited to add: Maybe I misunderstood, but I haven't found any information about an option where Zillow support staff will field questions from prospective buyers, on the seller's behalf -- which would be awesome, if it worked and was cost-effective. Is that what you meant John, or were you saying that Zillow support staff will help sellers get their listings posted for sale on the Zillow website, if they need some assistance?
Thanks for the thoughtful replies David and Seth. I agree that there are too many moving parts for my experience. My main motivation to self close was to be able to buy all of persons properties at one time for his convenience, including some low value properties I usually do not deal with. A little value add for the owner. But Seth, you are correct, the deal should have more than enough meat on it to cover closing costs. It looks like only a few of these properties would be worth it.
I have to admit, I let my emotions drive me towards this deal. I have targeted higher value properties in my last few mailers with no deals and am anxious to get out of my dry spell.