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10 contributions to Equity Carry Academy
LOI kinda data empty
The LOI Generator is not populating any of the Fields into the PDF that I inputted. Is anyone else experiencing this?
1 like • 2d
Sorry team. it had a little glitch that was fixed. I posted on it inside the Discord.
[UPDATED] LOI Generator — Testing & Feedback Request
[UPDATE] The LOI Generator has been updated to include the latest changes Steven made - Sep 17, 2025. Also, added students name and contact details to the last page of the LOI. Please test it again. I think we are very close to launching this LOI Generator. Steven's signature will be added once we go live! Let's Go! Hey Team, As some of you may know, we are testing the Letter of Intent Generator and want to ensure it works smoothly before rolling it out fully. Your feedback is crucial! It is super important that you test it and provide some feedback. 🔗 Test It Here LOI Generator Test Link 🔍 What to Do 1. Use that link to generate a test LOI for a sample opportunity. 2. Review the PDF thoroughly: 3. Try different scenarios: 4. Feedback Needed Please reply in the comments with your feedback. For example, ✅ What’s working well e.g. “Tracking number shows in header”, “All merge fields correct”, etc. ❌ What’s not working / issues e.g. “PDF cut-offs”, “Number missing in some cases”, etc.💡 What you'd like to see improved or added e.g. “Watermark with logo”, “Shorter tracking format”, “Preview before sending”, etc. ⏰ Timeline Please complete your testing and share feedback ASAP so we can discuss it on tonight's call and Move it to "Live" this week. Thanks for your help.
[UPDATED] LOI Generator — Testing & Feedback Request
1 like • 15d
not really sure what happened. I selected UK (+44) as the country selector, typed in the number as you put it and it was fine. can you try again
0 likes • 14d
@Ryan Watson yes. once it goes live, it will have his signature.
A Few Questions... Can YOU help?
I’m a transactional funder, and while that’s my main lane, I’m diving deeper into this strategy to support my buyers, to make some money as a wholesaler partnering here, and as a potential buyer. Right now my biggest need is help with the calculator. I’m not fully clear on how to use it and easily manipulate it to work out negotiations. If anyone would be willing to jump on a Zoom with me to walk through some sample numbers, that would be incredibly helpful. I can’t make the live Zooms this week but plan to join next week. In the meantime, I’ve been going through the recordings and want to ask: is it more valuable to stay current with live calls or to focus on catching up with older recordings first? I want to be sure I’m learning in the most effective way. Lastly, I’d like to confirm the process for submitting a first deal. From what I gathered in one of the earlier recordings, an LOI isn’t required — but I’d love to double-check the steps so I’m ready when the time comes. Thank you all — excited to keep learning and growing here!
1 like • 16d
@Sara Larson If you need any help, please let me know! have a good one.
Admin managers
I just promoted Jay and Bryan to Admin managers to help with Skool community support. Let's grow together!
1 like • 19d
Awesome!
🧾 IRS Imputed Interest Rules (IRC §7872)
((FROM AI)) This is NOT tax advice, and I AM NOT a tax specialist! IRS Imputed Interest Rules (IRC §7872) If you structure a seller-financed note at 0% interest, the IRS will treat it as a below-market loan and apply imputed interest using the Applicable Federal Rate (AFR). This means: - The IRS assumes interest should have been charged. - You must report the difference between the AFR and your stated rate (in this case, 0%) as taxable income. - The buyer may also be treated as having paid that interest, which could affect their basis or deductions. 📊 AFR Snapshot (as of recent months) Loan Term AFR Type Typical Rate (2025) Short-term (< 3yrs) Short-term AFR ~4.12% Mid-term (3–9 yrs) Mid-term AFR ~4.45% Long-term (>9 yrs) Long-term AFR ~4.75% These rates are updated monthly by the IRS and reflect market conditions. 🧠 Strategic Workarounds Given your compliance-first mindset, here are a few ways to structure creatively while staying IRS-safe: - Charge a nominal interest rate (e.g., 0.5%–1%) that’s still below market but avoids full imputation. - Use an interest-free note with a discounted purchase price, which may shift the tax treatment to capital gains rather than interest income. - Document the transaction clearly, including rationale for the rate and any business purpose (e.g., distressed sale, affordability). 🛠️ Copy-Ready Clause Example “Seller agrees to finance $X of the purchase price via a promissory note at 0% interest. Buyer acknowledges that IRS regulations may impute interest based on Applicable Federal Rates, and agrees to indemnify Seller for any resulting tax liability.”
1 like • 20d
Remember that the equity carry method that Steven uses, is not a seller financed note. This structure is not a second lien or a second mortgage because the seller is not acting as a lender. Instead, the seller is contributing capital as a 10% to 50% equity partner in the new LLC that owns the property. This is why Steven keeps calling a Joint Venture, because it really is a JV, with a clear operating agreement. Rather than holding a promissory note secured by a lien on the real estate, the seller’s position is documented in the operating agreement as a member of the company. The seller’s return comes from distributions of cash flow and eventual sale or refinance proceeds, not from fixed loan payments. For example, if the seller agrees to carry forward $400,000 into the LLC, they agree to receive a preferred return on this capital of 3.33% a year. This is not interest paid at 3.33%, this just means that the seller agrees to get his initial capital returned to them at 3.33% a year until the capital that was used to start the joint venture is paid off. So the seller will receive $13,333 per year.
2 likes • 20d
Because the arrangement is structured as preferred equity (they get paid before any of the other shareholders), all payments to the seller are contingent on the performance of the property and the available cash flow of the LLC. In the event of default, the seller’s remedy is to assume greater ownership control of the company—not to foreclose on the property as a lender would. For this reason, it is treated as an equity investment and joint venture, not as debt, a lien, or secondary financing. That is why, In accordance with guidance set forth by the Internal Revenue Service (IRS) for installment sales (see, e.g., IRS Publication 537), “income received over time through an installment sale may, under certain circumstances, be treated as ordinary income.” This approach allows for the recognition of gains and the associated tax obligations to be spread over multiple tax years, rather than realized in a single lump sum, potentially resulting in a more favorable tax outcome. But, I like you, are not an accountant or a lawyer. So, it would be good if we can get a specialist to spell it out clearly, so that it is easier to explain to others.
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Douglas Garcia
3
25points to level up
@douglas-garcia-5031
Seasoned entrepreneur with ventures in Marketing, HR and Fintech, AI and real estate, excelling in scaling operations and market strategy.

Active 1h ago
Joined Aug 26, 2025
Toronto, Ontario, Canada
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