All Forum Posts by: Al D.

@Daniel Miller First of all, I am not a tax adviser, and don’t know anything about you beyond what you posted in this thread. Based on the little I know about taxes in situations like you described, my answer depends on what your long-terms goals are:

-If you want cash flow, then do a 1031x (which needs to be started before any proceeds may hit your bank account/check issued to you) - especially if you can leverage your purchase(s) at 4:1 or better. You would not need to deal with recapturing depreciation. However, in this case, the full amount of your sale (including your sizable stepped-up basis) is “forever” (if you choose to never sell those new properties, or 1031x them - thus avoiding a taxable event) tied in to whatever you buy. But even that may not be bad if you should also want a chunk of cash to use elsewhere:

With a 1031 option, as I described above, you can be getting cash flow, as well as take out equity that there may be in the purchased property(ies) - tax-free - as a loan. (You can even purchase with 100% cash, and do “delayed financing” within 6 months: https://selling-guide.fanniemae.com/Eligibility/Mortgage-Eligibility/Loan-Purpose-/COR/1033001981/What-are-the-requirements-for-a-delayed-financing-exception.htm) And upon your own passing, your heirs get to “enjoy” that day’s (presumably-) stepped up value, which is what it sounds like happened to you.

-Alternatively; although, I presume this may not be your case: “… In general, to qualify for the Section 121 exclusion, you must meet both the ownership test and the use test. You're eligible for the exclusion if you have owned and used your home as your main home for a period aggregating at least two years out of the five years prior to its date of sale. You can meet the ownership and use tests during different 2-year periods. However, you must meet both tests during the 5-year period ending on the date of the sale.”

https://www.irs.gov/taxtopics/tc701

If you are married and file jointly, “Section 121 sale” would get you exactly $500k tax-free, but you’ll need to recapture any depreciation, which, I imagine, would not be much.

@Brian Garlington I love the suspicion. Lol… Apparently, it is typical for this city’s ordinances to become effective 30 days after the Council’s approval. And they meet on the first, third, and fourth Tuesday of each month. Cinco de Abril happened to be this April’s first Tuesday, and April has 30 days… Of course, these facts do not exactly disprove the suspicion, but…

@George Munoz I invest in Florida. For the benefit of my education, please advise whether a licensed RE agent in Florida is also allowed to be a wholesaler - and whether their brokers should be OK with that.

As far as I know, the FL agent/broker I have been doing business with for years does not do wholesaling - and I would think there’d be a conflict of interest if he did, certainly in my mind if I ever heard him say, “Now may be a good time to sell,” for one example.

I believe that the thesis of this post is not that all wholesaling does not work, rather that what the OP has to deal with from the telemarketers (wholesalers, some of whom may claim to be “investors”) are inquiries that could not possibly lead to a sale - they have bad lists. I agree with that thesis, and you probably do, too.

Since wholesaling works for you - and your main marketing channel is SMS - would you mind sharing: (a) Who provides your target list?; (b) What criteria do you use for/expect your list to represent?; (c) Do you check the numbers against the federal and/or the Commonwealth’s DNC list before you contact them?; (c.1) or do you consider that SMS is not in violation of either law? (d) How many phone numbers do you use for yourself to send the SMS from, and how often do you retire them?

I kinda don’t (reasonably) expect you to answer all of the above, but as much as you may feel comfortable with is fine.  Thank you 

I do think that “dumb” is a correct word here.  Whether one takes the meaning of the explanation behind the word as insult can speak to the recipient’s intelligence more than to the writer’s intent, in my opinionated view.  Besides, the writer immediately apologized for his use of the word.  (I need to point this out, because, as of this writing, your “defender” - who apparently also happens to have something to sell you - happens to have more votes than the OP.  But, I guess, this is supposed to be your safe place, dear wholesalers?  To me, tho, it’s just another post on BP, and I have something to say to you that some of you won’t like either.  But I have nothing to sell you… Just saying.)

I have no properties in distress, no public record of evictions since I can’t remember what year, etc - no way should I be on any wholesaler’s list, unless it’s just a list of OOS owners. If that’s what some of you are paying money for, I really don’t get it. But if you’ve been led to believe you are paying for a list of distressed owners, demand your money back. Who am I talking to? Glad you asked:

If you find your telemarketing number below, I am absolutely talking to you.

While I am no fan of @Jerryll Noorden’s apparent undiplomatic (I am being diplomatic) self-promotion here and elsewhere - but know nothing about whether whatever he is (not?) selling actually works (and don’t care to learn about for my purposes) - perhaps those of you whose number is in the list below should reach out to him for some advice, no matter the price. (You are welcome, Jerryll.)  Cause I can tell you that whatever you are doing now (at least with me and the OP) ain’t working.  To wit:

The following 62 numbers contacted me - without permission - this January. That’s exactly 2 contacts per day per each number, on average, that month. And some of these numbers contacted me more than once. And I have so many more numbers, neatly chronologized for forensic purposes for other time periods.

Now, please try to understand: My numbers are registered in the federal Do Not Call Registry - I don’t want to be bothered by the likes of you. Stay with me: Do you think that people like me would want to do business with people who don’t even care to check the Registry - or outright ignore our desire not to be bothered, violation of which comes with civil penalties?… I am sure we can trust you to stick to other rules and not attempt to screw us over, in other words, to be ethical.

Maybe there is some way to do wholesaling well.  Perhaps SEO is one such way - wherever learned/purchased from.  But if you do it the way this post describes, guess what people you are targeting are thinking about your intelligence and ethics.

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@Cody L. I don't know the potential harm, as I've never bought from/sold to a wholesaler. But if I understand the point of wholesaling correctly - which I think I do - there is money being left on the table by the seller, in comparison to what the seller could get having listed on the MLS, especially in today's market, regardless of the condition the property may be in.

I like for the consumer to have proper info for best decision making. Regardless of any disclosure, one’s lack of sophistication in these matters may still result in no better outcome. But it’s good that legislators are taking some steps. I like the burden of action this law puts onto the wholesaler, but it appears rather toothless to me from the little I’ve read so far - I don’t do any business in AZ (and am not a wholesaler.)

@Jay Hinrichs Yep.  They legally defined who is a “wholesaler,” mandated disclosure, and - most importantly - provided a penalty-free way for an unsuspecting consumer to get out of the contract (but only before the close of escrow) - if the disclosure had not been made.

That’s nice.  But I don’t know what happens if the consumer learns the facts behind the wholesaler after the close of escrow.

@Patrick Kaiser @Jay Hinrichs The Arizona law is HB2747 - 552R.  Some sources still show it sent to the governor for signature.  But the governor signed it on April 22 with 9 other bills.

https://www.azleg.gov/legtext/...

Effective May 5, 2022, Hayward will become the latest CA jurisdiction to be able to enforce the following: ”…Any person, social host or property owner shall be liable for any unlawful use, discharge, or display of fireworks at their property or gathering…”

For details, look up Ordinance Nos 22-01 and 22-02: https://library.municode.com/C...

@Robert Adams: I decided to look up “Upnest” here because I had just recommended it to a friend for an upcoming sale, and came across your post. Besides getting mail from some of the others you mentioned to sell to, I’ve only had experience using Upnest as a seller:

I used it in 2019, when I found myself without a local agent I could trust in a remote market where I suddenly decided to sell. While I could ask a well-known (highly-networked) agent in my local market for a referral, I knew that it would not be free to me somehow in the end (I once paid a 7% commission for a tough to sell remote property, where I used such a referral, and it was well worth it - for that property.) This property had no issues, the market was already slightly favoring sellers, and I only wanted to find a good (enough) agent for the lowest possible commission.

I believe I had a choice of 3 or 4 agents within minutes of giving my info to Upnest. While I can’t remember now whether I chose the lowest quote, or perhaps the agent I chose was offering certain “value-adds” despite being the second-lowest quote, I contracted for a 4.8% commission.

I sold to a retail buyer. My experience was positive; I am sure that the agent made all the difference, regardless of how she came recommended.

Of potential interest: A couple of the offers - "insultingly" below my asking price - were from some LPs/LLCs, one of which was definitely a REI arm of a large private equity firm.