2nd Lien investment - property in foreclosure
Unfortunately, I got into a situation with a colleague that I have invested with before, lending him money and receiving a favorable return. Well his development projecct this time, is in foreclosure with the hard money lender. Mine is the 2nd lien and will be wiped off soon. I will bite the bullet but would love to know how this whole amount could be considered as a tax write off against my regular income on Schedule E (?), and lowering my overall taxes? Can someone who has had this bad experience or even someone who knows the tax laws help me out please? Thanks in advance!!
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#1 All Forums Contributor
- Real Estate Consultant
- Summerlin, NV
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#1 All Forums Contributor
- Real Estate Consultant
- Summerlin, NV
talk to your accountant.
but if this loan is in Texas you can sue on the note and get a judgement if you get wiped out..
so you may want to explore that before you just write it off..
and for all these reasons I do not personally care for second position.. just too much drama if they go bad.
- Jay Hinrichs
- Podcast Guest on Show #222
