All Forum Posts by: Robert Iovine

@David M.

I suppose the better way of asking this is. With real estate markets super hot right now and foreclosure moratoriums reaching expirations soon, is there a buying method that could be utilized to obtain the property other than a foreclosure or short sale?

@David M. I was thinking this could be a way to work around the foreclosure moratoriums.

The way short sales were explained to me was the seller needs to agree prior to it being brought to the lender.

If the overage could be forgiven by the lender in the offer, it would save both parties from going through the foreclosure process and would be an incentive for the seller to accept an offer.

@David M. Thank you for the clarification. In that case, if the property is held for a year, am I correct in thinking it would qualify under capital gains. As such tax liability would be limited to 0% for anything under 40k (single) and 80k (married). Wouldn't this be a better play at significantly reducing tax exposure? I'm asking this from a perspective of someone starting to their real-estate investment journey. 

Can you utilize a 1031 (LKE) to avoid taxes on a flip if the home is in owned personally? Or does the home have to be owned by a company to take advantage of the a 1031?

There is a property in my local market that I have my eye on as a potential flip. The current owners are refusing to accept any offer below list as it will require the them to bring money to the table. The list price is above market value for a home in my area and is 90+ days on market. Currently, homes are under contract and pending a sale in under 30 days. My understanding is this home is heading towards a foreclose. Would it be possible to reach out to the lender directly to trigger the sale without reaching foreclosure status? Has anyone ever tried this or had success doing so?

Alex, 

The current 30 year fixed rate is 2.7%, your seller is asking for an additional 6% in interest. Additionally, an FHA can be obtained with a minimum of 3.5% down. Your seller is asking for 10%. The more cash you have to give as a down payment will limit the funds you have to do the required improvements.

I'll second Jaron's statement that this is most likely more then just a cosmetic remodel. The seller most likely knows that the home will not appraise for the sale amount or would not qualify for FHA because of needed repairs.