Posted by SusanL.–FL on June 01, 2001 at 11:31:09:
Sorry to ?hitch hike? on someone else?s post but Big Brother here has descended upon us and blocked MOST ?favorite? sites INCLUDING anything chat-related like posting. This was the only way I could get in.
Some days I can?t even access CRE. Other days I can only ?view? it but not post. It?s kinda like being bound and gagged in a chair and not being able to
talk–ya might say: a woman?s worst nightmare—ha ha
Anyhow, I found a great little book on tax deductions that I wanted to share. It might be helpful to some of the newbies out there. It?s called: 422 Tax Deductions [for Businesses and Self-Employed Individuals] by Bernard B. Kamoroff, CPA
I came across a couple deductions under ?Office Equipment? (in the home) that I hadn?t even thought about: brooms, chair mats, clocks, coffee makers, fans, humidifiers, lamps.
Another category that caught my eye was ?Children on Payroll?. You can pay your child up to $4,400 a year tax free; (2001 it is supposed to increase to $4,550). Many of us have our kids help out with cleaning out rentals or yard maintenance. Soooo, SAVE those receipts!
A HUD house was just listed for bidding today for $11,500 in my town. According to MLS, it sold a little over a year ago for $36,300. I want to bid on the house when it’s open to investors, however, I don’t want to pursue a lender and go through the lender’s hoops to do this. I want to flip it right away and not deal with any repairs, etc…This could be my first deal and I need all your suggestions on how to buy this home without a mortgage lender. Please reply soon, time is ticking and I really appreciate the help from those who are willing to share their knowledge with me and help me become successful, too.
This may not go for your area, but in my area when dealing with HUD homes, bank repos, etc. you will need proof of funds, whether it be from a hard money lender, normal bank, or cash in your personal bank account.
If you don’t have the proof of funds/pre-approval letter then they won’t even look at your offer.
Now, if you do get your proof of funds and they accept your offer you can then assign it to another investor. Most banks etc, have non-assignability clauses in the contract so, you’d have to read Steve Cook’s article about getting around the non-assignability clause. (it basically says that you buy the property in a LLC that you create and then assign THE INTEREST/STOCK of the LLC to the new investor)
I’m not sure if Susan’ post is related to your question but in my city and maybe everywhere else, flipping is not possible as the old gurus use to do. But, you could double-close if you have a buyer lined up. Okay, for example Buyer A: $11,9(don’t pay that much, check your figures for as the MAO -Maximum Allowable Offer, which is $11,9 * .7-repairs,holding, etc, this is an example I have it written down in Legrand’s book)but don’t even offer your MAO offer less, then offer that price, pay cash then sell to buyer B: $18k (whatever the market will hold)and take the difference. This is called a double-closing and not a flip but you will need cash lined up for the purchase or you will lose your earnest deposit and for a listing this small I would not deposit at $500 but $250. Any more questions email me and I will try to answer them for you. Oh, where are you located? And how much money do you have to invest with? Consider partners.