All Forum Posts by: Michael Dorgan

Honestly, if the place is in all 3 of your names, you probably have to split any profits 3 ways. Yet, this is not something I have any experience or prior knowledge of (multiple people on a deed). This screams for a CPA to examine. Please.

Please don't pay much for a list like this, if anything. This sounds pretty fishy to me. When banks are the sellers, they don't usually put up with any silliness on the part of the buyers. Good luck wholesaling any leads you get from this list. Remember, if the leads were that good, why isn't the list seller using them?

You need to talked to a skilled CPA and probably also a skilled real estate lawyer before you do anything. You are sitting on a 650-700k chunk of change here that could very easily disappear if you make any wrong choices. There are con-artists in this world who make living off of swindling people such as yourself. Get educated and get some professional help. The advice you are getting here is great and accurate as far as it goes, but it's only as good as the info you supply to us. The original posts from above, you neglected to say it was jointly owned. That's important. Your dad gave you an interest free loan to pay it off, that's important. You have probably lived in the place 2 of th elast 5 years, that's important. If you are married, you could probably sell the place nearly tax-free - except for the deed being split in 3 pieces.

You get the idea.

Remember, every refi costs you 1-2+% in fees, depending on who and how you refi. Refinancing every time your property goes up 10% is quick way to give your bank all the appreciation :)

Is there a redemption period in your state perhaps? Dunno. It sounds like you may need to call again and hopefully get a more knowledgable person on the phone.

Money is money. Commercial loans tend to go slower, have higher rates and fees, have shorter payoff periods, and in general are harder to get than residential mortgages. Getting one without having to Personal Guarentee the loan is next to impossible unless you have more assets than the bank giving the loan.

Honestly, why should an agent give you the time of day if you are a wholesaler? You aren't going to use them to sell and probably won't use them to buy. It's a waste of their time and yours.

Also, the MLS is probably a waste of your time as well. Properties listed there are a full, retail price 99.999% of the time. That one small percentage when they are not, there are hundreds of computer programs waiting to buy from deep pocket investors.

If you want the MLS just to get an idea of values, you cna get access to most listing through the net. Just go to the various broker websites and you can look at everything listed, or go directly through mls.com (or loop.net).

Studied a bunch of books. Learned what to look for and found a pre-foreclosure deal at WELL below market. Screwed up every single step of the way afterwards but still came out 50k or so ahead. Got hooked and started shot gunning to all sorts of methods. Got over-extended and learned patience when I got back out from under a huge sea of mortgage and LOC debt by the seat of my pants :)

I'm sure his book sales qualify :)

Again, why a partnership? Even a sole proprietorship <sp> could be an entity if you really felt the need to run it through a company and wanted a company car or such. In terms of buying the new bathroom and kitchen, these are capitol improvements that count towards the tax basis of the property and are not necessarily directly deductable. They will count towards depreciation expenses though, if you do rent it eventually or will be reclaimed against future sales price.

Any of the other expenses you mentioned are deductable without an entity getting in the way as well. The only reason most people put real estate into an LLC or partnership is for asset protection, not for tax purposes.

With as much money/equity as were talking about here, you would definately be well served talking with an experienced CPA. Said person can point out any deductions and such for you and help you with future tax planning.