I just promoted Jay and Bryan to Admin managers to help with Skool community support. Let's grow together!

When discussing with the sellers the recourse steps to reclaim ownership, would they have to wait the state statutes foreclosure period or is this something you have to clarify in the agreement, like 1-9 payments, etc. Typically you’d have 1-4 month period Notice of default then 2-3 month notice of trustee sale, then 21 days to auction. I saw mention of this but then I wondered … how many would trip an action.

Something I found to be really helpful and (DIY calc fix at same time) is to learn what each major component of doc means and the math behind it. This will keep you on your game to notice incorrect numbers quickly. If you need help correcting cells, google it and learn some basics of excel or I can help with simple tasks. I realize that you might want to just plug in the numbers and it works, but until its locked for edit, things are going to get scrambled. It’s good to know, pretty simple for baseline stuff (this) will save you time waiting for someone else to fix and will give you a better understanding of the math we use.

This came up in our student zoom. Omni Pro remembers this being a thing that came up previously. I asked chat about seller tax implications on zero interest. Yes — the IRS generally assumes there is interest on seller-financed deals, even if the seller charges 0% interest. This is due to the “imputed interest” rules under Internal Revenue Code Section 7872. Ask Chat to give an example, I did on 500k/7 yr balloon and it was like 6k/yr in taxes. To Sofias point of conservative underwriting and Bryan’s point of the both sides investor view, maybe include some interest (.5%-1%) as that may ease a potential burden and provide a pathway to close a deal. Providing tax strategy is clearly not our role in this process. Luis posted a good take on the benefits of a CPA vs. an Enrolled Agent.

It's in the Classroom.