All Forum Posts by: Jack Sarcia

Hello all,

A seller I reached out to said they were not looking to sell the property I was asking about but that they had another property they do want to sell quick and cheap.  

This property is not in my area or my criteria. I'd like to wholesale it to another investor.

After doing quite a bit of research, reading books, and wasting $20 on a Wholesaling DVD I still have some questions.

>Seller accepts my offer. Is $100 deposit on a 75K house acceptable?

>When signing a contract for the purpose of transfer/assignment to another buyer what is the proper way for me to identify myself as the buyer? (Ex. and or assigns VS entity) 

Thanks everybody for your continued support.

Thank you Steve,

So if I want to pull $10k out as boot are you saying that I would pay $1500 (15%) cap gains?

Would I also pay an additional tax towards recapture?                                                           Ex) I have taken 50k in depreciation over 5 years, and recapture taxes this as 25%. That's $12500. Wouldn't any boot that I "try" to take just go straight to that $12500?

Thanks again for your response.

Thanks for your responses.

I would rather fold everything directly into my new purchase however I have some debt pending and would like to pay this off now to avoid further interest.

I have owned the property for 5 years and take 50k in deprecation and I believe that this is taxed at 25%. Does this negate any chance of pulling the 10k out at closing?

Thanks again to both of you.

Hello all,

To take some cash out of my proceeds at closing would be very helpful in paying off some debts. This is a 1031 Exchange.

Is it possible to take $10k and pay the tax due on that amount?

Bill,

Thank you very much for your reply. This information has been very helpful.

I used conventional financing when I bought this property and I have a payoff of 284k.

Thank you for explaining exactly what "net sales price" is.

Hello,

I am selling my 3 unit building for 450k. I cannot get a bank loan.

To my understanding (I trust someone will correct me if I am wrong) if I want to buy a bigger multi it needs to have a purchase price of 450k or more , RIGHT?

This sale will net me about 100k which I can use as a down payment.

This is where I start to get confused....How could I borrow the other 350k needed to purchase the building? And what kind of terms would be typical?

My plan is to purchase an off market deal for below market value. Hold the property for 2 years then sell it and cash out my investor....IS THIS SOMETHING THAT ONLY HAPPENS IN SEMINARS?

all responses appericated, thanks.

Thanks Paul. Very helpful.

Hello all,

I will have 70-90k as a down payment and I only need the financing for 3 years.

I cannot go to a bank because I am in my first year as a self employed individual.

What I'd like to do is hear from anyone who has used private money to make a 1031 exchange purchase into a property of greater value.

(EX. Selling my 3 unit and buying a 4 unit using my net proceeds and a private loan)

It seems proper to keep this a short term loan by refinancing the property at the end of 2 years. By then I would qualify for a loan and would have a few options.

Anybody?

Hello all.

Can anyone offer some advice on closing off market deals without an agent?

How do I legally transfer deposits to the seller? Where can I obtain quality contracts?

Thanks BP community.

@Dave Foster 

Dave,

Thank you very much for your helpful reply. That was 100% all new information to me and now I need to think before I speak.