All Forum Posts by: Bradi Gross
Bradi Gross has started 3 posts and replied 10 times.
Post: Reserves/Prepaid costs - include when running numbers?
- Posts 10
- Votes 1
I just received a cost of closing work sheet from my lender for a buy and hold rental property we are purchasing. Closing costs are roughly $3,900 and "reserves/prepaid costs" are roughly $1,500. Do I need to include the reserves/prepaid costs in my numbers for upfront costs on this deal? I have closing costs, but was not sure these need to be included when looking at ROI. Thanks!
Post: Auction Property With A Federal Tax Lien
- Posts 10
- Votes 1
Originally posted by @Peter Walther:
Originally posted by @Jay Hinrichs:
Originally posted by @Arnie Abramson:
The IRS has 120 days to redeem at 6%. My guess is that you will not get a title commitment if you intend to purchase it at a tax sale. What state are you in?
back in my day and maybe that changed but the rate was 9% I have bought numerous properties with federal tax liens and have never had one redeem.. NOT one.. I had them pester us into paying some tax for the person who lost it.. but not redeem it outright.
the risk is if you do improvements past making the house safe from the environment.. they don't have to pay you back for any rehab you did to it..
you wont get title insurance until the 120 days is over.
these were frankly my favorites.. 90% of investors are scared and don't understand or they need to borrow money and cant.. so its perfect for the true all cash investor.. knocks out a lot of competition and i have gotten some smokin deals on those.
5.12.5.2.7 (06-07-2016)
Amount Necessary to Redeem Property- In any case in which the United States redeems real property under 28 USC 2410 or IRC 7425, the amount to be paid for the redemption is the sum of all the following:
- The actual amount paid by the purchaser at such sale
Note:
-
In the case of a purchaser who was the holder of the lien that was foreclosed, the amount paid includes the amount of the obligation secured by such lien to the extent it was satisfied by reason of such sale.
- Interest on the amount paid by the purchaser calculated at 6 percent per annum from the date of such sale until the anticipated redemption date
- If applicable, the amount of a payment made by the purchaser (or successor in interest) after the foreclosure sale to a holder of a lien senior to that foreclosed
- If applicable, the amount equal to the expenses necessarily incurred in connection with such property after the sale but before redemption MINUS the income from such property and MINUS a reasonable rental value of such property (to the extent such property was used or allowed to be used by the purchaser)
Post: Auction Property With A Federal Tax Lien
- Posts 10
- Votes 1
@Arnie Abramson thank you! I am in Oklahoma.
I appreciate the information. We would be an all cash buyer so really interested in the opportunity. It is a great deal, but the cloudiness of the federal tax lien is keeping a lot of investors away, so we are hoping with the right knowledge we can capitalize on it. Thank you!
Post: Auction Property With A Federal Tax Lien
- Posts 10
- Votes 1
My husband and I are considering purchasing a home at auction that has a large federal tax lien on it. Can someone explain further the details of the 120 redemption period the IRS has? I was also recommended to get a Title Commitment pre-auction, what does a Title Commitment cover? Thanks for any/all help.
Post: New Member from Tulsa, OK Looking to BRRR
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- Votes 1
@Richard Lucas thank you! I will check it out
Post: New Member from Tulsa, OK Looking to BRRR
- Posts 10
- Votes 1
@Richard Lucas thank you!
Post: New Member from Tulsa, OK Looking to BRRR
- Posts 10
- Votes 1
@Richard Lucas thanks for connecting. I am definitely interested in a BiggerPockets RE group. Where did you join the Mastermind group?
Post: New Member from Tulsa, OK Looking to BRRR
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Thanks Craig. I appreciate the info. How do I find Meetups in my area?
Post: New Member from Tulsa, OK Looking to BRRR
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- Votes 1
@Callum K. thanks for reaching out and I agree the next 6-18 months will likely be a good time to buy. Things will hopefully clear up a bit after the uncertainty of COVID-19. Any RE investment groups you are a part of in town?
Post: New Member from Tulsa, OK Looking to BRRR
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Hi, I am from Tulsa, OK and my husband and I are beginning to look for BRRR opportunities in the Tulsa MSA market. Looking for homes under $100k with ARV of $100,000-$130,000. I am currently a commercial property manager with a local company and previously a commercial real estate agent. We are working on building our Core Four and any recommendations or referrals to local RE groups would be much appreciated.