All Forum Posts by: Joseph Hernandez

@Jesse LeBlanc. wow, great advice. You cleared up everything. I appreciate your help!

@Jesse LeBlanc. Thanks Jesse for your input. So, if I only wholesale the property and utilize a double close, I will have to pay capital gains? 

Hello. If I'm assigning a contract where the seller is in the notice of default stage, is it ok to allow the end buyer to use financing, e.g. hard money loan? Also, if the seller is in notice of sale stage, should I only allow cash buyers since time is of the essence and also, if I allow financing and the buyers loan doesn't fund in time, I risk the seller getting foreclosed and I lose my assignment fee. TIA!

@John Slater. I see. In foreclosure deals, do you suggest that I only work with cash buyers? Since time is of the essence, if an investor is taking out a hard money loan to finance the purchase, the lender may delay funding, and the seller's lender may foreclose. Thanks John.

@Wayne Brooks. I would never tell a seller that I'm the end buyer. Although I'm a newbie, I flipped 7 houses and I'm also a real estate and mortgage broker. I'm well aware of misrepresentation. 

@Wayne Brooks I never said I don't want to pay ordinary income taxes. I was asking if I had to pay capital gains taxes, because on a double close, I technically own the property for a very short time. I will ask a CPA.

Thanks for your reply John. You mentioned that hard money buyers would be great repeat business. Why wouldn't cash buyers be repeat buyers? Also, I'm looking for a HML, not only for the reasons you mentioned, but also for myself. Dipso agent? Pls call me if you are an active lender.

@JohnSlater. I think there's a misunderstanding. The homeowner will not also be the borrower. I'm the wholesaler. The homeowner is in foreclosure. He has nothing to do with borrowing. He's at the NOS stage. He's desperate to sell his property. I'll use best efforts to find him an investor that can close in time, but I include a clause in the wholesale purchase agreement that I can't guarantee that the buyer will close in time, because obviously I have no control over the buyer's ability and intention to close. I plan to have my attorney create both the wholesale purchase agreement and the assignment contract. So, how can I be held liable if the deal doesn't close? 

Good point Jon. Thank you sir!

@John Slater You said "hurt the borrower", do you mean hurt the seller? Yes, I am in California. How can I be in trouble if I don't close in time? If the buyer takes out a HML, and ultimately doesn't get funded, it's not my fault. I was hoping to get an answer to on average, who pays more for a SFR property, a cash buyer or a buyer taking out a hard money loan. Thanks.