All Forum Posts by: Brandon Jackson

@Luther Wilson III

I couldn’t agree with you more! I love purchasing subject to and selling on a lease w/option or contract for deed. As far as the tax implications, contract for deed can hurt a little more because you’re taxed on the sales price, even though you’re not actually getting all that profit up front.

I’ve been trying to research more and get a better understanding of this, but it seems to be a very “GRAY” topic. Our new accountant has us now recording it as an installment sale, but since you’re “selling” within the first year of owning it’s still taxed at higher capital gains.

For this reason, we’ve been leaning more towards subject to purchase and then lease with option or true rental.

The lease with option allows us to write it off as a rental for however long the term is, and then convert to a sale (using contract for deed) that’s taxed at a much lower rate.

But I do agree with you! Contract for deed has worked for us and can work, you just have to be prepared for the tax implications that come with it. My advise, use section 179 bonus depreciation and pay that money towards a new work vehicle instead 😉

Hey James. I’m a local investor here in the Kansas City area. If you haven’t made any progress yet with the HELOC get in contact with me. I know some local banks that would love to do businesses with you.

I'm super late, but no

Welcome to BP. You're definitely at the right place to take your knowledge base to the next level. I invest in the Kansas City area and have done a few flips but we mainly focus on creative financing deals. Let me know if I can help in anyway.

Welcome to BP! I have a duplex in KCMO I would entertain selling. It's in a C neighborhood, but you're looking at about a 25% COC return.

Why don't lenders look at or consider contract for deeds? It's still income every month just like rental income. This is the strategy I'm using for my investment portfolio and it seems like banks are penalizing me for doing this.

And by the way, it doesn't have anything to do with me not holding title for 6 months and then not refinancing. I know for a fact that they will do it before the 6 months is up. They have an in house portfolio.

What's up Preston Schmidt ! I have a few questions since you're a lender. Most of my properties have been sold on contract for deed within the last year. Are the guidelines that you have to collect this monthly income for at least a year before it's considered as income from contract for deeds? I'm asking because I was trying to refinance my personal home, but the lender said they can't honor the contract for deed income because it's not on my previous years taxes and I haven't been receiving the income for a year. Because of this it puts my DTI over 40% when that's not accurate. Thanks

I have a property I just recently purchased in July and put down 25K because it was conventional financing. Numbers are as follows: Purchase Price: 95K ARV: 135K Down Payment: 25K This was a motivated seller so I was able to get it at a deal price and it didn't need hardly any fix up. I used a bank that I've had a long term relationship with (4 years to be exact) and I currently have 5 loans with them. 6 including this new one. I already knew that this bank didn't require seasoning, but I asked again anyway just to make sure my cash wouldn't be tied up in this property. After confirming that I would be able to cash out immediately I decided to proceed with the purchase. After closing on the property, the loan officer at the bank started acting funny, not returning my phone calls, and saying they have some new global credit guy that has to come in and look at all of their loans to make sure they're good. WHY WASN'T I TOLD THIS BEFORE I CLOSED!!?? Long story short, after months of me calling and being told I should have an answer within a week and never getting an update, I called and the loan officer told me they wouldn't be able to refi because my loan balances are too high and they didn't think it would be best for them to make them any higher. WAIT, WHAT?? I was pissed!! Especially since I just assumed 3 loans from this bank in January and prevented them from three foreclosures. So now I have a property that I have a 70K loan on, I'm receiving 1K per month from a tenant buyer, there's 65K of equity sitting there and I can't refi with this bank. Has anyone ever dealt with a situation like this? What steps did you take to get your cash back out? Any suggestions would be helpful. Thanks for your help in advance. Happy Investing, BJackInEmUp Instagram-@bjackinemup Snapchat-@bjackinemup Facebook-@bjackinemup Twitter-@bjackinemup

What's up guys! Anybody have a cash buyer looking to purchase a property in Clay County in KCMO? I have a wholesale deal locked up on contract and just looking for a buyer. Definitely willing to do some co wholesaling. Let me know. -Brandon Transon Relations Investment Group LLC (913)730-0579