Any of yall owner-financing out a house right now?

[svauto-erotic855]

^^^ If Mexicans are buying it and if they work in trades such as plumbing, electrical, construction, etc you will not have a problem if you sell it to them. Personally I would do a 15-year note and make sure that the note holder is an LLC. Go through a title company and make sure the buyers keep the property insured.

I have rent properties in Dallas and I've owned them for 20 plus years now. I couldn't tell you the first regulation about rent regulations in Dallas. Since I typically rent exclusively to felons at properties that prohibit you from renting to felons I simply make them a member of the LLC for the term of a lease and that has been the work around I've used for years. Technically they're not renters.

[Broncojohnny]

I’m just saying, it’s done every day all across the country. Quite successfully I might add, if one knows what they’re doing. While a borrower can just get up and walk away, the underlying collateral can’t (as long as we’re not talking about mobile or manufactured homes here). And I even know several folks that all they do is mobile/manufactured but that’s a different animal. Still highly successful but the risk is higher and thus takes more capital to spread the risk out amongst more units/notes.

When the IRS catches on to their fraud and realizes they own equity in your house that you are owner financing what happens? I don't know the answer to that question but I can't see how taking the risk is worth it when any other swinging dick can get a mortgage these days.

[svauto-erotic855]

When the IRS catches on to their fraud and realizes they own equity in your house that you are owner financing what happens? I don't know the answer to that question but I can't see how taking the risk is worth it when any other swinging dick can get a mortgage these days.

Nothing happens, all they do is put a tax lien on the property just like they do on any other property that is owned by someone with delinquent taxes.

[Broncojohnny]

Nothing happens, all they do is put a tax lien on the property just like they do on any other property that is owned by someone with delinquent taxes.

No big deal at all. I'm sure you can find a lawyer to work for free on something like that once you have to foreclose.

[svauto-erotic855]

No big deal at all. I'm sure you can find a lawyer to work for free on something like that once you have to foreclose.

I bet you're the type that wears four mask layered up when going out in public. Any property you sell could have an IRS lien attached to it. I've even bought properties that have an IRS lien attached to it; it gets settled by the title company prior to me taking possession.

Illegal aliens are protected class in the United States even more so than homosexuals or women. Illegal alien convicted felons can even kill white women in broad daylight with a stolen handgun and get away with it. The IRS could care less about chasing money that they're owed from the illegals.

[Chopped54]

This is a home I own outright in SE Dallas. Inherited from Mom. 90% Hispanic hood. Its a 2/1 brick, p&b, that has an additional closed in porch which could easily make into 2 more bedrooms if it were sheetrocked, etc. HUGE back yard with big trees. Tax value about $65k. I have a standing offer for $85k sight unseen right now.

The house needs more work than I think I want to put into it if I were to try to rent it, not to mention I hear Dallas rent codes are a bitch. Built in 1956, it only has 2 circuit breakers. Anyone here with such experience? Who has rent houses in the City of Dallas?

I was thinking selling it "as-is", $100-$120k, 9.5%, 30y, 10% down. The terms are what they are because the buyers are likely of little-to-no or poor credit history. After 60days behind on a house payment, deed returns back to me and I foreclose. Really no different than selling used cars off a tote-the-note lot except I don't have to hunt down a car to recover it.

If they burn it down or wreck it, its insured. If they don't, the improvements they make are just icing on the cake.

I'm trying to decide whether to create an LLC anyway as I have a rent house in Mesquite and plan to acquire more. I'm thinking it is time to get better organized.

May be interested at an as-is cash deal. Where is it at?

[Broncojohnny]

I bet you're the type that wears four mask layered up when going out in public. Any property you sell could have an IRS lien attached to it. I've even bought properties that have an IRS lien attached to it; it gets settled by the title company prior to me taking possession.

Illegal aliens are protected class in the United States even more so than homosexuals or women. Illegal alien convicted felons can even kill white women in broad daylight with a stolen handgun and get away with it. The IRS could care less about chasing money that they're owed from the illegals.

I buy, sell and finance property all day every day. That's all I do. I have never seen a property with an IRS tax lien on it.

If you are exposing yourself, as a lender, to a tenant that is a tax cheat then you are taking a lot of risk. Getting out of the situation you have described would be expensive and not worth that risk when compared to just selling it.

[Stephen]

https://youtu.be/PB4Nby2Ai-g

[slow84lx]

Has anyone said yet that owner-financing a house isn't a good idea?

[svauto-erotic855]

I buy, sell and finance property all day every day. That's all I do. I have never seen a property with an IRS tax lien on it.

If you are exposing yourself, as a lender, to a tenant that is a tax cheat then you are taking a lot of risk. Getting out of the situation you have described would be expensive and not worth that risk when compared to just selling it.

In the 09' crash I bought a foreclosure in Collin County that had an 20 year old IRS lien on it that the title company missed. The title insurance paid it off and it never caused a single problem for me. I bought another foreclosure in Farmers Branch in 10' knowing it had an IRS lien and practically stole it because no one else would touch it because of the lien. An IRS lien is just a lien. Any property you hold the note on can get all kinds of liens placed on it. Mechanics liens from the home owner not paying for work on the house or a property tax lien are the 2 most common that come to mind.

[bcoop]

When the IRS catches on to their fraud and realizes they own equity in your house that you are owner financing what happens? I don't know the answer to that question but I can't see how taking the risk is worth it when any other swinging dick can get a mortgage these days.

It depends on how it’s financed. If it’s a CFD/land contract, nothing. IRS can’t do shit because it isn’t in their name so it’s not their asset. If it’s a note & mortgage, it would attach as a lien.

I’ve seen some crazy shit. Deaths, murders, houses burn down, get blown up, etc. But I have yet to see anyone I know lose a house to an IRS lien.

I get it. You don’t like it, we’ve had this discussion before. All I’m saying is it’s done, very successfully every day. Terms of the deal are key. Down payment is key. Holding it in reserves is key in case you have to foreclose. Probably too much for the average Joe but for someone that works in this space and familiar with how it works would tell you their only problem is they need more Capital to do more deals. It can be big and scary to those not familiar with the process but just another day for those that do this all the time.

Personally I like real estate investors and business owners. They own other assets I can go after if they default. I’m not necessarily wanting to finance people with shit credit.

[Broncojohnny]

In the 09' crash I bought a foreclosure in Collin County that had an 20 year old IRS lien on it that the title company missed. The title insurance paid it off and it never caused a single problem for me. I bought another foreclosure in Farmers Branch in 10' knowing it had an IRS lien and practically stole it because no one else would touch it because of the lien. An IRS lien is just a lien. Any property you hold the note on can get all kinds of liens placed on it. Mechanics liens from the home owner not paying for work on the house or a property tax lien are the 2 most common that come to mind.

Dude, did you read what I said in my last post? I see liens all the time, all day every day. I deal with Title issues all day every day. I have bought and sold billions in commercial property.

Of course you had no problem as a BUYER. Good luck as a Lender.

[Broncojohnny]

It depends on how it’s financed. If it’s a CFD/land contract, nothing. IRS can’t do shit because it isn’t in their name so it’s not their asset. If it’s a note & mortgage, it would attach as a lien.

I’ve seen some crazy shit. Deaths, murders, houses burn down, get blown up, etc. But I have yet to see anyone I know lose a house to an IRS lien.

I get it. You don’t like it, we’ve had this discussion before. All I’m saying is it’s done, very successfully every day. Terms of the deal are key. Down payment is key. Holding it in reserves is key in case you have to foreclose. Probably too much for the average Joe but for someone that works in this space and familiar with how it works would tell you their only problem is they need more Capital to do more deals. It can be big and scary to those not familiar with the process but just another day for those that do this all the time.

Personally I like real estate investors and business owners. They own other assets I can go after if they default. I’m not necessarily wanting to finance people with shit credit.

The answer to this scenario with tax cheats is whether your claim as the Lender is subordinate to the IRS's claim in the event of foreclosure.

From what I have gathered on this:

- If there is enough equity in the house, the IRS will liquidate it and pay you off as Lender.
- The IRS has the right, for 120 days after foreclosure, to take over payments on the house to preserve their equity stake (you can't transact on it)
- Liens for state taxes are first in line and your claim as Lender is subordinate to those liens

In any event, there is no way to convince me that the risk is worth the reward in this tax cheat situation unless the Buyer is overpaying by a huge amount. Just sell the house to someone who can get a loan and go on with your business.

[svauto-erotic855]

Dude, did you read what I said in my last post? I see liens all the time, all day every day. I deal with Title issues all day every day. I have bought and sold billions in commercial property.

Of course you had no problem as a BUYER. Good luck as a Lender.

You said you had never seen a property with an IRS lien on it so I gave you two examples of properties that I've dealt with that had IRS liens on it. Seems as clear as day to me. Did you even read what you wrote?

[Broncojohnny]

You said you had never seen a property with an IRS lien on it so I gave you two examples of properties that I've dealt with that had IRS liens on it. Seems as clear as day to me. Did you even read what you wrote?

Oh golly, thanks for pointing out that you have bought two properties with IRS liens on them. The fact that you seem to think that is relevant tells me all I need to know about your expertise on this subject.