Private Financing
if I was to buy a property using private financing how do we work the paperwork on the interest paid for the year for tax purposes and also what about the interest paid to him would I just send him a 1099 or will he just have to report it himself?
Is this private financing from an IRA or an individual, or through the individual's company??
However the lender is specified, that is who gets the interest , and
However you take title to the loan, if it is through your LLC or S-Corp or partnership or personally, will depend on how you file the interest report. Most CPA's will tell you how you need to report the lenders interest paid. Usually the lender is their own corp. and you are a corp. so not form is needed. You don't have to 1099 and corporation.
it will be just a private individual no llc or anyother corp. I will call the cpa if we go that route and ask him. I just thought I would ask here because you guys don't charge me $100 an hour.
Do you folks know anyone who would be interested in finding private mortgage note holders that want to sell them? Let me know. Thanks-
Scarlett
Scarlet
There is a service out there that is copying from the recorders record all purchase money trust deeds or mortgages taken back by individual private lenders or sellers. I have been getting mailings from all over the United States Offering to buy notes taken back at time of sale.
They are obviously brokering as they cannot give a straight bid for the note and deposit same in an escrow here in Los Angles. I have talked to several and they seem just to pussy foot around and will not deposit any money in a Escrow. They all seem to be wanting the note and trust deed to be sent to them. I guess while they are trying to unload it.
Seems that you had a good idea and someone is doing it now.
Cheers Lucius