All Forum Posts by: Account Closed

I no longer need to post on this forum. How can deactivate my login and remove all my personal info?

Im starting my research into the rental side of things and one of the first areas im curious about is the supposed tax benefits.

I found this example on another website. Its generic enough that I thought to share it here. The problem I see here, is that the mortgage interest is still an expense. However, I think im looking at this wrong. The goal here is to build wealth, while allowing the rental income to cover your cost of acquiring the property with a mortgage, while at the same time using the tax benefits of depreciation.

Here is the example

Not sure if this has been posted already, but this doesnt look good

link

I know, wide open question, but I would like to hear from others who wholesale deals they find on a "regular" basis. Ive got a few Im working on now, but Im trying to get a feel for how many I could manage to do in a a time period of 6 months. I use the time frame of 6 months instead of "monthly, because the market fluctuates and so does the effectiveness of your marketing and ability to find deals.

I guess, let me ask this a simpler way - is 4 deals something that is easy for you to find and do in a 6 month time frame? Im sure some will say they do that many in a month, and some might say they only did that many in a year. So lets hear it.

James - I think you are correct, I get many conflicting answers based on which customer service rep I talk to.

[update]
As of today, at least my short sale paperwork is in their system and they are going to assign a negotiator. Im still in the game, for now.

It was originally a countrywide note, now BofA. I called in today, and the customer service person said to disregard, because I was now approved to discuss the loan. go figure.

So far, my dealings with BofA have gone like this
- Faxed in my authorization letter, wait...wait...wait some more
- finally, they see it in their system
- When I call the loss mitigation department again, they can no longer see it, because im talking to a different department
- Submitted short sale package, the stack of paperwork was nearly 1/2 thick and the resulting pdf file was nearly10MB on the lowest resolution!
- Within 3 business days (that was fast for rejection!), I get a letter informing me they cant accept my offer because my authorization letter has a signature that doesnt seem to match the signature on the original loan documents. THIS IS THE SAME AUTHORIZATION LETTER that I faxed to the first number they gave me, and the rep I talked to said it looked fine.

:roll:

Someone was trying to explain a strategy to me today that involved owner financing. Basically, you buy at a deep discount, but the seller does owner financing for you, then you turn around and sell near retail value (maybe after some extra work/money to fixup), also using owner financing. It goes something like this.

You purchase property valued at 100K for amount owed, say 55K, which you put 5K down and the seller finances the rest.

Then, you find a buyer to purchase at, say 92K, which also offers 5K down, and you owner finance the rest. Now you have paid off the 5K down you initially put on the deal, but also have cash flow, equity, etc.

So this sounded interesting. However, as with most people selling their homes, wont most homeowners balk at an idea like this? What is the incentive for the seller?

Its not an REO. When you say "give them the lockbox" - who are you referring to?

In my case, I think it would make sense to jsut give the seller my lockbox. Or, we could put it on the door the same day we sign the contract. Ive got my first wholesale deal pending this weekend. If there are no "surprises", I will be putting the property under contract. So I think Im off to home depot for a few lockboxes and yard signs.

I think the answer im after is as simple as getting a lock box. I might as well put a sign in the yard also as I might get a retail buyer.