Cautions on Wraps | Coach Carson

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Creative Financing For Real Estate Investors

Introduction

Welcome Message & Do This First! (3:38)
Important Disclosure
Why Not Just Use Bank Financing? (6:50)
The Benefits of Creative Financing (5:54)

Module 1 – Private Loans

Module 1 Presentation Slides
What is Private Money? (11:44)
Benefits of Private Money (18:59)
Legal Considerations (14:46)
How to Structure – Short-Term, Fixed-Interest Loans (18:26)
How to Structure – Short-Term Variations – 100% Financing (3:39)
How to Structure – Short-Term Variations – Minimum Return (2:39)
How to Structure – Short-Term Variations – No Payments (Accrued Interest) (3:00)
How to Structure – Short-Term Variations – Kicker, Split Cap, Participating Loan (10:51)
How to Structure – Short-Term Variations – Combined 1st & 2nd Mortgages (3:48)
How to Structure – Long-Term, Fixed-Interest Loans (7:46)
How to Structure – Long-Term Variations – Call vs Balloon Note (4:05)
How to Structure – Long-Term Variations – Variable Interest Rate (5:19)
How to Structure – Long-Term Variations – Sell with Owner Financing (3:18)
Find Private Lenders – Key Tips (12:29)
Find Private Lenders – Different Types of Lenders (4:40)
Find Private Lenders – How to Avoid Problem Lenders (6:15)
Find Private Lenders – How to Build Credibility (9:55)
How to Present Loan Opportunities – Chad's Process (3:39)
How to Present Loan Opportunities – Sample Loan Proposal (6:25)
Common Lender Objections (With Responses by Dyches & Chad) (17:43)
Module 1 Quiz

Module 2 – Self-Directed Retirement Account Loans

Module 2 Presentation Slides
What is a Self-Directed Retirement Account? (7:44)
Different Types of Accounts (30:11)
Who Are Disqualified Parties (3:54)
Prohibited Transaction Rules (6:04)
Penalty Examples (5:44)
Unrelated Business Income Tax (UBIT) (7:40)
Example 1 – Straight Loan (11:36)
Example 2 – Option to Purchase with Small Funds (4:47)
Example 3 – Rental Property Investment (5:57)
Real Estate in Your IRA or Solo 401k (10:05)
Example 4 – Partner with Your IRA (5:37)
Additional Tips for SDRA Investing (11:31)
Module 2 Quiz

Module 3 – Buying with Seller Financing

Module 3 Presentation Slides
What is Buying with Owner Financing (6:01)
Benefits of Buying with Owner Financing (14:45)
Example 1 – Traditional Seller Financing (10:11)
Example 2 – Second Mortgage Seller Financing (8:25)
How to Find Owner Financing (8:33)
Tips to Negotiate Owner Financing (18:10)
Asking for Discounts (7:41)
Module 3 Quiz

Module 4 – Selling with Seller Financing

Module 4 Presentation Slides
The Basics of Selling with Owner Financing (7:03)
Benefits of Selling with Owner Financing (15:18)
Dodd-Frank Act & Other Regulations to Be Aware Of (13:32)
Structuring Financing to Sell the Loan (15:14)
How to Screen Buyers for Owner Financing (9:48)
How to Service Owner Financing (11:00)
Dealing with Defaults (12:55)
Module 4 Quiz

Module 5 – Option to Purchase (aka Straight Option)

Module 5 Presentation Slides
What Is It? (5:16)
Benefits & When to Use (8:31)
Example 1 (13:36)
Example 2 (12:23)
Example 3 (6:27)
How to Protect Your Option (6:38)
Other Tips (7:28)
Module 5 Quiz

Module 6 – Lease with Option to Purchase

Module 6 Presentation Slides
What Is It? (2:16)
Benefits & When To Use (10:35)
Example 1 (9:41)
Example 2 (14:30)
Example 3 (10:06)
How to Structure & Protect Your Lease Option (8:07)
Other Tips (10:34)

Module 7 – Subject-To the Mortgage

Module 7 Presentation Slides
What is Subject to the Mortgage? (2:02)
Benefits of Subject to the Mortgage (1:54)
Basics of How to Use It (8:58)
Example 1 (11:29)
Insurance for the Subject To Deal (9:21)
Power of Attorney (4:42)
Module 7 Quiz

Module 8 – Contract-for-Deed | Bond-for-Title | Land Contract

Module 8 Presentation Slides
What is a Contract-for-Deed (2:01)
When to Use It (& When Not To) (10:12)
Example 1 (7:10)
Cautions (3:33)
Insurance for Contract-for-Deed (4:54)
Module 8 Quiz

Module 9 – Wrap Around Mortgage

Module 9 Presentation Slides
What is a Wrap Around Mortgage? (5:54)
Case Study (3:16)
Calculating Return on the Wrap Equity (8:20)
Wrapping Previous Owner Financing (4:09)
Cautions on Wraps (2:42)
Split Wraps (7:16)
Module 9 Quiz

Module 10 – Key Terms, Clauses & Paperwork

Module 10 Presentation Slides
Review of Basic Paperwork Needed for Different Techniques (29:07)
Key Terms – Interest Rate (12:22)
Key Terms – Payments (16:48)
Key Terms – First Right of Refusal (7:32)
Key Terms – Non-Recourse Exculpatory Clause (4:39)
Key Terms – Due on Sale Clause Assignment Assumption (8:27)
Key Terms – Partial Release (4:28)
Key Terms – Wrap Mortgage (6:50)
Key Terms – Substitution of Security (13:20)
Key Terms – Exchange Clause (3:42)
Key Terms – Subordination Clause (4:00)
Key Terms – Insurance Proceeds (3:33)
Key Terms – Written Notice of Default (3:56)
Module 10 Quiz

Module 11 – Tax Treatment of Creative Financing Techniques

Module 11 Presentation Slides
The Basics of Income Taxes (21:13)
Depreciation & Recapture (15:36)
Section 121 Owner Occupant Exclusion (Live-in Flips) (7:13)
Imputed Interest (7:48)
Installment Sale & Dealer Property (7:16)
Contract-For-Deed (Land Contract) (3:09)
End of Year Reporting (1098s) (2:24)
Option Premiums & Lease Options (8:36)
Foreclosure & Cancellation of Debt (4:07)
Module 11 Quiz

Conclusion

Final Message & Need Your Help (1:22)

Course Book

Digital Version of the Course Book
Physical Version of the Course Book

Forms & Paperwork

Forms – Private Money
Forms – Buying with Owner Financing
Forms – Selling with Owner Financing
Forms – Options
Forms – Lease Options
Forms – Subject-To
Forms – Contract-for-Deed (Land Contract)
Forms – Wrap Around Mortgage

Archive of Office Hours Calls with Chad and Dyches

8/31/2021 Office Hours (89:43)
9/8/2021 Office Hours (99:36)

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Cautions on Wraps

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