All Forum Posts by: Jason F

coming onto BiggerPockets asking for help with their foreclosure/refinance/creative sale of their home, has really increased as a result of the current market crisis.

I haven't been on this site for very long at all and I can tell there is a sharp increase in the amount of people the log on and immediately post their 'situation' regarding their over-leveraged properties.

Has anyone noticed the same thing? One post and they are gone.

Do you think this is an indication of what a lot of people are thinking across the nation? Their first thought is to seek out a RE investing forum for 'expert advice'.

Now would be a great time to come out with a book on what to do with properties with no equity in a lousy market.

Jordan,

I think you might see some very common aspects of the Great Depression in the next few years. While I think you are right, it might be a stretch to think that we will all be waiting in food lines, I don't think things are going to be very peachy for much longer.

Most everyone in the 30s probably thought the nation was in the 'information age' also.

It's hard to see the effects of this economy right now, over the next year, as the credit crisis takes its full form, you will start of actually see people losing jobs. That has not occurred full force yet. Unfortunately it will. That's when the cycle gets to a nasty point and where crime will certainly increase as well.

People are buying safes because they are most likely taking huge amounts of money out of certain banks/investment outfits. A neighbor at an investment house I own told me yesterday she was on the phone with an AIG rep for hours trying to get her money out. When you are holding $30k in your home, you definitely want to make sure it doesn't burn up in a fire. Most new safes are fire proof.

Roy,

People all across the country are going through the same exact situation.

If you don't see yourself being able to completely fix the problem it might be a good idea to bail on the property. Like someone else said, your credit is going to be hit anyways.

You won't be able to qualify for loans because lenders will not lend to your LLC if it does not have adequate assets/income. You start X corp, but until x corp makes enough money through operations, you personally will need to sign for the loan.

The limit right now is four.

Just because the loan is 'commercial' doesn't mean they aren't going to require you to have the proper income/assets.

Yeah, sure, you can pay cash and then hold the note yourself. Great idea. The only limitation is how much cash you have. It seems like you would have to have quite a bit of capital to get a large enough package of loans to be presented on Wall Street.

I'm sure you could sell a few houses using a contract for deed, but what happens when you aren't able to qualify for new loans because you have several existing mortgages open. Even though you have someone else paying you on a contract for deed, the mortgage stays in your name. Therefore every house will show up on your credit, making it harder and harder for you to qualify with every home.

Well, seeing as most normal buyers aren't getting approved, I would think most illegals wouldn't have a shot in hell.

You are going to have to look at Dan's figures.

If you are paying them under the table, then no one is getting the tax benefit which was the root of your question.

So there you go. Find out what your husband is paying.

If he is paying 40% of his earnings towards taxes, you would want him to preform work on the house and work his magic to not get paid.....

But now that I think about it, we all might need you to pay a little more in taxes to help with this bailout thing.

If your husband is the sole person benefiting from the reduce tax liability I would think that it would be best for his company to incur the costs for the repairs.

You, as a property owners, will only be paying 15% in capital gains if you keep the flip for 1 year. Shorter than one year, you will pay the same tax rate as you do for your personal income.

So the question you have to ask your self, who pays a higher rate, you/your husband or his company. Whoever does, give them the expenses.

Obviously 1031s complicate matters. If you are rolling your profits to another property TAX FREE, then it doesn't matter what your taxes on it are, you don't have to pay them. So give those expenses to your husband's company.

Just my 2 cents.

One way to save A LOT of money is to not hire CPAs that don't explain things to you in a way you understand. If you are paying this lady, you shouldn't have to come onto here to get advice from people like me who don't know what they are talking about :)

Seriously, this CPA knows all the details, tell her to slow down and explain it in laymen terms. She's working for you.

2 questions:

Is this your personal residence according to the county?

and

How long are you staying there?

Your CPA is saying "if and if" because a lot of these things are contingent on if's.