new here and don't want to give too much info - Posted by annonymous

Posted by annonymous on December 23, 2006 at 23:06:47:

I wouldn’t say i worked hard at avoiding them it just seems most my bills all came at times when I could least afford them i.e. taxes comes in april and 4th of July to Oct 15th is when I make 85% of my yearly pay at those times of the years I earn 500 to 2000 every two weeks (commission) other times of the year I’m lucky if I cover the cost of my hotel/motel bill which I need to pay when I travel for a living. As for the unpaid student loan maybe I do need to work on repaying it but I hate paying for something that I did not really get. meaning the school never returned the unused portions of the loan money as far as I have been able to find out and then again this student loan has never turned up on my credit report as of yet

new here and don’t want to give too much info - Posted by annonymous

Posted by annonymous on December 23, 2006 at 08:00:20:

This is my story I have been “stupid” most of my life for reasons all my own.

stupidity 1…Have not paid taxes in almost 25 years.
stupidity 2…Have never paid a debt in my life.
stupidity 3…I work only about 6 months per year. (maybe this isn’t so stupid)

to my advantage I think I have not had any new debts other than unpaid taxes in almost 7 years. Living in motels paying all cash up front so not even reference from landlords on credit (disadvantage probably)

as far as taxes goes I am paid strictly in cash no 1099’s or any other tax forms are filed on my behalf matter of fact most my employers don’t even know my real name or my social security number.

I would like to start straightening out my life somewhat. When I say somewhat I really don’t want to give up my profession since I don’t know any other type work. So here are my questions since I would like to buy some real estate preferrably duplexes and other multi-family dwellings including one for my own self to live in when I am not doing my profession.

question 1. What would be the best way to get started buying my first duplex?

question 2. How can I change my credit rating while buying this duplex?

question 3. Is the newspapers the best place to look for homes to buy? how about mls? are tax sales all that great?

question 4. I keep seeing something about “selling short” what exactly is this.

anything else that you can think of that will help me in my situation?

How to deal with IRS - Posted by oldrebel

Posted by oldrebel on December 28, 2006 at 11:27:27:

For years I too wrought havoc with my delinquent taxes, ignoring debts and it finally culminated with BK.

But in the process of growing up (which, Thank God, I’ve finally begun to do) I did a few things right including hiring a good tax lawyer, for cash fee, to deal with IRS for me and settle my IRS debt for big discount.

IRS has many folk like you and me make contact and try to work out a discounted settlement and payment arrangments so no novelty to them.

But it was certainly beneficial to me to have the tax lawyer do it and he did me an outstanding job.

It gave me, and probably will for you too, a spring in my steps when I’d finally 'fessed up and began to un-warp my life and attitude.

Best wishes to you and please know and understand that there was only one perfect man ever and all the rest of us are sinners.

Merry (belated) Christmas

Re: new here and don’t want to give too much info - Posted by luke

Posted by luke on December 25, 2006 at 10:26:46:

Ok, I’ll take the bait…what is your profession?

Questions… - Posted by JT-IN

Posted by JT-IN on December 23, 2006 at 16:27:14:

Where you have been, how and why aren’t really relevant for this conversation. Where you go from here is much more important. To address some of your questions…

  1. Buying a duplex. Since it sounds like you have some outstanding baggage, (Liens, CJ’s, etc.), you will need to create an alter-ego, in the form of an entity such as an LLC or Corp, for the purpose of owning this property. Otherwise, if you place property in your name, these judgments or tax liens will immediately attach to this property, thereby clouding the title and you will have no ability to sell the property, if you chose to. So you need some knowledge of entities and asset protection, in order to proceed.

1a. Buying this duplex will be faster and easier if you can find one that is owned by a motivated seller, who needs to dump it… Maybe one that needs lots of work that you could upgrade considerably, and thereby add equity. Don’t rule out single family houses either… as there are many more of these than duplexes, in most areas. Not sure what you interest in duplexes is, unless maybe you plan to live in one side of it… which isn’t a bad way to go either. Since you are used to living in motel rooms, you might even find a sfh that could have a small, separate apt added, which could accomplish the same thing. Stay lean and mean during this transformation.

  1. Changing credit is a relative thing. This depends upon what you need. From the sound of it you likely need a complete overhaul, and not the deletion of one or two dings. So it depends on exactly what you need, and this is too general of a question to answer accurately, with any value. If you have judgment liens against you, it is possible for those to be settled for less, or purchased by someone else for less, then enter a release of the CJ. If your main problem is tax liens, then you will need to solve this problem with IRS, and that is a whole another matter, and too complex to address here as well. Suffice it to say that credit repair takes time and patience, but it is possible. Miracles only happen on TV, as a general rule.

  2. None of the places you list are the best spot to find props. Your best bet is to keep reading here, and learning more about that topic. (You realize that your 4 questions, in order to be properly addressed, would require a series of course be written, to answer these fully).

  3. Selling short is a term used when referring to stocks. Short sale is the RE term for when an owner/seller owes more on the property than what it is able to sell for. The investor/purchaser will agree to pay the seller less than what is owed, and this agreement is then presented to the lender, for their approval. If the lender approves the deal, they then agree to accept less than what is owed, and remove their lien/mtg. Therefore the property sells short of what is owed on it, therein creating a short sale. Again, there is much to know on that topic as well, before one can jump out there and do one correctly.

Yeah, I can think of a lot of things… but mainly you need to spend some time learning. If you wish to offer more specifics about what type of liens you are encumbered by, amounts, etc… and what resources you have available to you in order to attempt to settle these… then creative ideas can be applied of how to get where you need to go… Bottom line is, you have been leaving a trail of havoc behind you, and it will take time to obliterate signs of this, so that it doesn’t effect you if you are able to make changes in how you do things in the future.

Just the way that I view things…

JT-IN

Re: new here and don’t want to give too much info - Posted by GL(ON)

Posted by GL(ON) on December 23, 2006 at 14:45:41:

I went 10 years without filing or paying taxes. If you don’t owe any taxes it’s not a crime to not file.

Your best bet is to get some kind of low paying job and file for the year. Can you justify something for 2006, on the books or off the books? Self employed is OK. File and pay taxes. You have to use some common sense here. Going from 0 to $1,000,000 a year is going to throw up some red flags. But if you show a low income even one that you don’t have to pay taxes on, that’s fine. As long as you file you will probably never hear anything more about it.

If anyone asks, have some answers ready. “Why didn’t you file income taxes for 25 years?” “I was sick, broke, drinking a lot, drifting from one low paid job to another. Now I have got my life together, and I am trying to make something of myself”. If you really wanted to be prepared for anything you could join the AA and show your 6 month pin to back up your story.

If it appears that you had little or no income in the past, they aren’t going to knock themselves out investigating something with no payoff. At the most you might get a letter or talk to an IRS agent on the phone for a few minutes. I didn’t even need to do that.

When you say “my profession” I assume this is something legal. Even if it isn’t the IRS will take your tax money.

Once you are on the books with the IRS you can start building up your credit history. Get a credit card at Sears, buy something you need anyway, and pay the bill off early. This gives you the best credit rating there is. All the computer knows is Paid Early or Paid Late. Pay one bill early and you go to the top. This is one of the few places where you start at the top. I suggest Sears because they have the most liberal policy on handing out credit cards.

A month later go get another credit card. Walmart or some other store. They will check your credit and find you are R1 with Sears. When you get the new card, buy something you need anyway and pay the bill early.

Once you have 2 or 3 credit cards, get a Visa or Mastercard. You should be getting lots of applications in the mail by now. If they won’t give you one, go to a local bank and get a secured Mastercard or Visa. You do this by getting a card with a $500 limit and giving them $500 cash to hold.

Once you have the card do you know what to do? Buy something you need anyway and pay it off early.

Amazingly once you have one Mastercard or Visa (even a secured one) it is no problem getting more from other banks, unsecured.

Don’t abuse this. You want to have no more than 4 credit cards in use at one time. DO NOT run up bills. Pay them all off at the end of the month.

If you have more than 4 cards it drags down your credit rating. UNLESS they have zero balances. This is why it is so important to pay them off each month.

By doing what I just said you will build up a beautiful credit rating. In a year or so the banks will be falling over each other to loan you money at cheap interest rates.

You need to have 2 years taxes to show the lenders. You want to show a modest income for 2006 ( no red flags to the IRS) and a substantially larger income for 2007. This will establish your growing ability, income, and credit worthiness.

Play your cards right and one year from now you should have a better credit rating than Donald Trump. After all he got in trouble and stiffed the banks in 1992, while your record is perfect.

As far as buying a house or a duplex that is quite possible with or without a credit rating. Lease option, contract for deed, land trust, partnership deals, all would allow you to own or at least control substantial ammounts of property.

The best thing you could do is go legit and get yourself on the record right away. Start building up your credit rating. Credit is the life blood of real estate investing.

Remember it takes money to make money but it doesn’t have to be your money. So guard your credit rating with your life.

You also need to educate yourself about investing. Read the success stories and other parts of this web site, they are excellent education in themselves. Look in your local library for books and tape courses. This can all be done for free.

This will answer most of your questions.

Figure out what you want to do and if you have any other questions come back and ask them. Someone is sure to have the answer or know where to find it.

Some answers - Posted by Clint

Posted by Clint on December 23, 2006 at 08:44:54:

Perhaps you are overlooking important facts:

  1. Save your money
  2. Buy the hotel you live in

Far fetched, perhaps not, the by the night hotels are tremendous money makers.

Talk to the owner…

Clint

Re: Questions… - Posted by annonymous

Posted by annonymous on December 23, 2006 at 22:43:12:

As I have not checked my credit report since 2000 I am not sure what is on it right now for sure. I do know that I had my 2nd car repo’d in 2000. most was medical bills. I had a student loan since back in the mid 80’s.

As for tax liens I haven’t done anything with the irs nor do i have any liens issued by the IRS that I know about. as of right now I am currently residing in another country and only come in the US for the 6 mths that I work there

Re: Some answers - Posted by annonymous

Posted by annonymous on December 23, 2006 at 22:57:52:

i don’t ever stay in the same hotels my profession causes me to travel the USA the entire season when I am working two weeks in this town a month in that town, and I’m in that town a week very rare i’m in the same place more than a month at a time and even when in same town for a month one week i will be on the East side of the city the next week the South-west side.

Also hotels/motels don’t seem all that great too me. (visiting one is fine living in them sucks)

Re: Questions… - Posted by JT-IN

Posted by JT-IN on December 24, 2006 at 19:04:02:

The items that you mention here are resolvable, but it will take time and money. Time in that it doesn’t fall into place overnight, and money in that you may be able to settle these debts or judgment liens for 10 or 20 cents on the dollar. Actually, it would be far better for a third party to be settling thees matters, as most times the creditor isn’t all that keen on directly benefiting the party who stiffed them. They will usually settle with a 3rd party as it is less emotional for them than than you.

The fact that you move in and out of the country regularly, there is certainly a record of this, due to passport scanning and tracking. So even though you don’t show up on the radar screen with the revenue side of things, you surely exist in the eyes of the US. I wonder what type of cross reference that they have with things like this these days, with homeland sec being what it is… You are in a spot of telling a tale in order to catch up with being a tax paying entity again, which has greater risk than not filing at all. Once you file you are stating those numbers to be a fact, as opposed to omission of a return, which certainly carries it’s problems, but separate from filing a false return. I think you need more specialized advice on this before you proceed, and I wouldn’t rely on anything that you obtain on a website bb like this one, as a marching order.

You are in a position where when you make steps back into the system, they must be the right steps, or else you do yourself significant more harm than your current predicament. Proceed with caution.

JT-IN

Re: Questions… - Posted by Sailor

Posted by Sailor on December 23, 2006 at 22:54:04:

You may qualify for residency in a no-income tax state so as not
to incur any future state tax liabilities. FL & TX are good choices,
& you can get a mail forwarding/bill-paying service to handle
things. Fees are reasonable. I have used services in both states
while living abroad.

What strikes me the most about your story is that in all probability
you have worked harder to avoid the liabilities than you might
have if you had taken care of them initially. Bet the emotional
stress has been intense, kid.

I’m glad that you now recognize some of the problems & are
preparing to tackle them. You can do it, & it might be easier than
you think. Good luck!

Tye