All Forum Posts by: Lee Zhao

@Jay Hinrichs Thank you Jay for the reminder! I will definitely check on Nevada's laws on seller financing to investors and to owner occupied.

@Jon Lee, please PM me. Thank you!

@Mitch Messer Thank you for your suggestion! If our clients sell to investors, it will be a commercial loan, no need to comply with DF Act. Then how our clients "get more reliable buyers and faster, cleaner sales? How does this type of sale process look like? We may not need RMLO, but we still need to have a servicing company. Do we need an attorney going through all the paperwork, or we just need a title company to do that?

Hi LV investors! My broker and I manage rentals. Most of them are free and clear SFHs and a few condos. There are owners who don't want to be landlords anymore but still desire stream of monthly income. So we consider helping them with seller financing strategy to fulfill their need. I have been doing a lot of research and reading threads on BP on this subject. When it comes to comply with DF act, each state has their own rules and regulations. I want to connect with Vegas seller financing investors and other professionals like respectful attorneys, MLOs, servicing companies, etc. who are well versed in Nevada SF regulations and DF Act compliance and you have used. Any input and recommendations would be greatly appreciated. Thank you in advance!

@Linda Weygant thank you so much Linda for all the explanations! I have already checked around about finding a tax adviser who is well versed in this field for myself and for our investors. I will definitely check on Natalie Kolodij threads on the same topic. 

@Linda Weygant  With some smart planning and a really good understanding of future income sources and amounts, you can possibly push the capital gains down to $0 since there is a 0% tax bracket available when all income sources are down below certain dollar amounts.

Linda, can you elaborate a bit more on how we can achieve $0 tax or close to $0 with seller financing? I truly appreciate your expertise.

@Mindy Jensen you raised the questions so timely that I had been thinking about the questions these days. We have a handful investors who bought properties free and clear at the bottom of the market. Now a couple of them are thinking of seller financing their properties which now are the rentals we help managing.

@Basit Siddiqi @Linda Weygant on how a seller financing is taxed, please confirm my understanding is correct. They will pay tax on depreciation recapture on year of sale. They will pay tax on capital gain on down payment they receive on the year of sale. They will pay tax on interest income they receive each year. So let's say they purchase a property at $80k at the bottom of the market, and now the property value is $200k. They don't pay the capital gain on the difference of $120k on the year of sale but only pay capital gain tax on the down payment. Are there any taxes they need to report and pay? Thanks for your great help!

Congrats, Daniel, on such an inspirational write up! Persistence pays! 

@Ehsan Rishat @Sam Shueh  Thank you for the advice! I combined your suggestions and sent a follow up letter, offering three solutions: 1. cash purchase, 2. get someone to live at the property, taking care of repair/maintenance, and they get monthly cash flow without being a landlord (I am thinking about seller financing). 3. help them sell the property since I am an investor/agent familiar with the neighbor. Wait and see what happens. If they respond with one of my solutions, we can then go from there, negotiating price/terms. 

@Ibrahim Hughes: thanks for your suggestions! It's not a foreclosure. The property is free and clear. They had tenants before - good, bad, and eviction. The owners are an investment LLC. They did some renovation about a year ago and occasionally I saw someone in and out, and then it has become quiet for so long up to this date. Where should I go from here - try to make offers of different price/terms and wait to see what happens?