All Forum Posts by: Brian Gibbons

@Nicola Harvey

Here are questions to ask any seller

The objective is to find either good wholesale deals or pretty house terms deals

Home Seller – Questions to ask

The following is a list of sample questions you should ask a seller. When talking

to a seller, try to ask the questions through the course of a conversation and try

not to sound like you are reading from a list.

(Note: You will not ask all of these questions depending on the answers the

seller gives and your investing objectives.)

Asking About The Seller And Their Property:

Asking About The Existing Financing:

from sales price to

get loan balance.)

What Kind Of Deal Can You Get:

(Follow-up by asking if that is truly the least they would take.)

guarantee the mortgage

payments and maintenance?

or cost to you?

@Nicola 

Here is a form to use on all sellers

You are looking for a problem with the property or the seller (probate, divorce etc)

Then contact us

If there are loans tell us

-----------------------------

Address __________________________________________ Date _________

Location / Cross Street _______________________________ Map Pg# _____

Seller _______________________ Ph# ____________ Alt. Ph# ___________

Listing Agent _________________ Ph# ____________ Alt. Ph# ___________

CONDITION

__Occupied / __Vacant _____ Bed/_____ Bath Construction _____________

A/C ___________ Elect. Amps ________ Garage _____ Year Built _______

Roof ____________________________________________________________

Exterior __________________________________________________________

Interior __________________________________________________________

Kitchen __________________________________________________________

Baths ___________________________________________________________

Plumbing ________________________________________________________

Appliances _______________________________________________________

Neighborhood ____________________________________________________

Other Work Needed ________________________________________________

________________________________________________________________

FINANCIALS

1st Lien Bal. $_________ 2nd lien Bal. $_________ In Foreclosure: __Yes/__No

Asking Price $_________ My Offer $_________ Resell Approx. $__________

Terms: __ Subject To, __ Agr. For Deed, __ Seller Fin., __ Lease Option, __ All Cash

Additional Notes __________________________________________________

________________________________________________________________

________________________________________________________________

CONTACT RECORD

Name Date Note

_________________________ _____________ ____________________

_________________________ _____________ ____________________

_________________________ _____________ ____________________

_________________________ _____________ ____________________

_________________________ _____________ ____________________

_________________________ _____________ ____________________

@Nicola Harvey

If you're 21 I would get my license and have an experienced broker that knows creative financing and work with him-her for a year,

You can search my posts on creative financing such as owner financing, subject to, lease options, and installment sales

@Beau Benjamin

I may be able to help you if you PM me regarding lease to own which is a good opportunity

Every states little bit different if you're in DC I recommend that you find a registered mortgage loan originator to underwrite the buyer as per their ability to repay rules with the Dodd Frank

If this is your residence and not investment property it makes a difference

If there's existing financing on the property like a mortgage loan or a HELOC that makes a difference

If you could tell me what the fair market value of the property is, the existing financing, meaning the loan balance and the P ITI payment, and the market rent, I could help you

CRM that is used 

Zoho

Podio for Real Estate

@John Jackson is the KING of Texas lease options.  

His eyesight is going bad but he has a healthy opinion of how good looking he is.

I trained him in 2002 and he has done over 500 lease options.  

He is awesome.

A good legal TX site on owner financing in TX is 

http://lonestarlandlaw.com/Wraparound.html

Good luck!

@Ken Badziak

www.Investorcarrot.com is the best out there.

I used Investorpro but back in 2008-09.  It was ok.

@Max Mac Phail

DO NOT EVER SELL ON SUB2

You are giving up the deed.  Sell on a wrap or lease purchase when selling, you want the best deal for yourself.  You have a due on sale clause with the wrap, and a RMLO would be prudent on the buyer to be. 

Put an ad 

OWNER WILL FINANCE.

RE: Buying on terms - buying on a ILC, LO, LP, Wrap, etc, is a different story.  Buy on terms all day.

Interesting article on installment sales

If you’re selling a prime piece of real estate, you can probably get top dollar in today’s market. But it may be worthwhile to structure the deal so you receive payments over several years.

Strategy: Sell the property on the “installment sale” basis. As long as you receive payments from the buyer in two or more tax years, you don’t owe current tax on all of your gain in the year of sale.

Not only does this defer the tax, it may also reduce your overall tax bill on the gain.

Recent tax-law changes further encourage real estate sellers to use the installment-sale method.

Here’s the whole story: Under the installment sale rules, only a portion of the gain is taxable in the year in which you receive a payment. Also, the taxable portion on the sale qualifies for favorable capital gain treatment.

The current maximum federal income tax rate on long-term capital gains is 20% for taxpayers in the highest ordinary income tax bracket. How­­ever, most taxpayers will owe no more than 15% to the feds on long-term capital gains. For sales of depreciable real estate, a maximum federal rate of 25% applies to the portion of gain attributable to your depreciation deductions. In addition, a 3.8% Medicare surtax now applies to the lesser of “net investment income,”(NII) which includes most sales of rental real estate properties, or the amount by which your modified adjusted gross income (MAGI) exceeds a threshold of $250,000 for joint filers (or a MAGI of $200,000 for single filers). These figures are not indexed for inflation.

Thus, you could pay an effective tax rate of 23.8% (20% + 3.8%) or 28.8% (25% + 3.8%) on the sale of highly appreciated long-term capital gain property in 2015.

What is the taxable portion of the payment? It’s based on the “gross profit ratio.” Gross profit ratio is determined by dividing the gross profit from the real estate sale by the contract price.

Example: You acquired a parcel of commercially zoned land several years ago. It has an adjusted tax basis of $600,000. In 2015, you agree to sell the property for $1.5 million in five annual installments of $300,000 each with the first installment received in 2015. Because your gross profit is $900,000 ($1.5 million – $600,000), the taxable percentage of each installment payment is 60% ($900,000 divided by $1.5 million).

When you report the sale on your 2015 tax return, you’re only taxed on $180,000 of gain (60% of $300,000), reducing your exposure to the 20% capital gains rate and the 3.8% net investment income tax.

For simplicity, let’s say you save the 5% capital gains differential on $100,000 of income each year. That’s a tax savings of $25,000 (5% of $500,000)—well worth the wait.

Finally, watch out for a little-known tax trap. If the sales price of your property (other than farm property or personal property) exceeds $150,000, interest must be paid to the government on the deferred tax to the extent that your outstanding installment receivables exceed $5 million.

Tip: Keep an eye on the $5 million limit if you want to preserve tax deferral.

@Steven Hamilton II is awesome at tax