Owner faces Cap Gains but wants to sell - Posted by TCR_Va

Real Estate Investing Real Estate Financing
1

Posted by Matthew on November 11, 2002 at 22:06:40:

TC-
There are 2 ways to do this

  1. give her a small down pmt and wrap your buyer, in it include an assignment fee for the dif.
  2. do a contract for deed, record it and then get a second lien.
    what is she expecting?
    MG
2

Owner faces Cap Gains but wants to sell - Posted by TCR_Va

Posted by TCR_Va on November 06, 2002 at 20:13:35:

I have a potential lease purchase (sandwich lease) deal with an owner. She has a nice 3 bd/1.5 bath in a great neighborhood. She said she wanted to sell it but was told by her accountant that she would face large capital gains taxes. She moved out of the house and into another house belonging to her friend. She has not lived in her own house for 2 years now - she rented the house out to a regular tenant (who’s still there). She claimed with the goverment on her taxes that her house was a rental and NOT a primary residence. She was advised by her accountant that she would have to reclaim the house for two years now as her personal residence in order to avoid the capital gains tax.

She told me she may be interested in what I have to offer (a lease purchase-sandwich lease for 2 or 3 years) if I can get her past the tax issue. She just wants the mortgage payments made ($600/mo). Her one mortgage balance is $97k. Her asking price is $115k. Comps in the area are around $150k.

Is there ANY way that I can get her past this tax problem and sign up a deal?