Who is a Disqualified Person? Who is not a Disqualified Person? This is a critical distinction for understanding prohibited transaction rules for IRAs. The definitions come directly from IRC Section 4975(e)(2), and the list of “Disqualified Persons” is intentionally broad to prevent self-dealing. Who is a Disqualified Person? A “Disqualified Person” includes, but is not limited […]
Finance Glossary Sorted by Category I. Notes & Debt Terms (Payments, Interest, Modification) Term Definition Source(s) adjustable rate mortgage (ARM) A variable interest rate note, often starting out with an introductory teaser rate which resets in a few months or years based on a particular index. allonge An attachment to a note occurring between preparation […]
Regulatory Report – Land Contracts Contract For Deeds Installment Land Contracts October 31, 2025 Regulatory Legal Issues, resources No Comments Analysis of Installment Land Contracts Executive Summary This briefing document provides a comprehensive analysis of installment land contracts, also known as contracts for deed, synthesizing their legal framework, historical context, modern application, and associated risks. An installment land contract is a form […]
FAQs Land Trusts: An FAQ 1. What is a land trust? A land trust is a legal agreement where a trustee holds the title of a property for the benefit of a beneficiary. The beneficiary retains control over the property and directs the trustee’s actions. 2. How does a land trust differ from a living […]
Lease options have two basic sides or categories to them: We are going to buy or control with a property owner using a lease purchase arrangement Or we are going to sell on a lease with option to a former renter that wants to own the property. See the following sections Buying on lease options […]
Lease Options When Buying Sandwich Lease Option June 25, 2024 Lease Option, Lease Option When Buying, Lease Options, Lease Purchase, Rent To Own, Sandwich Lease Option No Comments Lease Option Sandwich Training Report: A Strategic and Legally Defensible Approach to Buying on Lease Option & Lease Purchase Prepared For: Real Estate Investors & Homebuyers Executive Summary This report provides a comprehensive framework for acquiring […]
Training Report: The Escrow-Based Rent-to-Own Model Prepared For: www.REISkills.com Date: October 26, 2023 Subject: Implementing a High-Performance, Secure Rent-to-Own Strategy Using a Future Option and a Pre-Established Escrow Executive Summary This report outlines an advanced, highly secure Rent-to-Own model that moves beyond standard lease-option agreements. The strategy involves executing a standard lease alongside a “Future Option” contingent on the tenant-buyer’s […]
What is a Prohibited Transaction? In simple terms, a Prohibited Transaction is any improper use of your Self-Directed IRA (or other qualified retirement plan) by you, your beneficiaries, or any “disqualified persons” for their own direct or indirect benefit. The IRS defines these transactions to prevent self-dealing and ensure the retirement account is used solely for investment […]
Notes November 1, 2025 Notes, Notes Business, Promissory Note, Promissory Notes No Comments Notes and Their Provisions the structure, requirements, and specific clauses governing the promissory note and the corresponding debt obligations. Here is a summary of the key concepts within this section: The Promissory Note The promissory note is a written document serving as evidence of a debt owed by one person to […]
What is Self Dealing in a Self Directed IRA? In an Individual Retirement Account (IRA), self-dealing refers to transactions where the account owner uses IRA assets for personal gain, rather than for the sole benefit of the retirement account. The Internal Revenue Service (IRS) prohibits such transactions, which can result in severe tax penalties or the disqualification of […]
Seller Financing October 26, 2025 resources, Seller Financing No Comments Video Player 00:00 11:32 Unlock Deals Everyone Else Misses: The Ultimate Guide to Seller Financing & Lease Options Brought to you by Brian Gibbons | www.REISkills.com Training Module: Creative Financing Mastery Introduction: It’s Not About Price, It’s About TERMS Forget competing with every other investor for the cheapest price. […]
Subject to means subject to the existing financing. On the HUD-1 closing document. it says “loans taken subject to the existing financing”. Subject to is legal. Subject to does give rise to the due on sale clause. We use revocable Land Trusts with subject to. Sometimes we use subject to plus a promissory note for […]