All Forum Posts by: Alfred Smalls

@Scott Johnson Georgia, I also buy in South Carolina, and north.

I have a seller that recently received a notice of sale under power. When the seller is in this phase of the foreclosure process is it too late to sell to a cash buyer? 

Asking because I’m getting conflicting answers elsewhere.

@Caroline Gerardo thanks! Yes I read up on a few of those things in regards to Georgia myself. I won’t advise him on the taxes at all, I don’t want to be liable for misinformation and I honestly just want both sides to win. I truly appreciate your knowledge!

 @David M. so seller has had the property for over three decades and has lived in it but has primarily as of recent rented it out. With agreed upon purchase price of 250K it would be a 210K profit and I’m assuming taxed at about 15% which around 31k. I thought about this route you’re mentioning and do have this in regards to his total profit he would ultimately like to walk away with and a potential for uping purchase price if after capital gains it still meets his walk away profit amount. 

But I just wanted to see if going the seller finance route would work with a fix and flipper or just a seller finance buyer and he still wins in the end.

Again I really do appreciate your thoughts and feedback.

 @Caroline Gerardo ok learning a few different things here. What I had etched out in the payment plan was a ballon. We agreed to have payments low with high interest rate to get payments to decent month payment to his liking. 

Also are some of the taxable laws and contract laws different in your state as I am in Georgia. Or are these the terms that is for all states in regards to seller financing?

@Eliott Elias I’d say medium repairs. Not a lipstick job but not a full gut job for sure.

@Caroline Gerardo so the contract I have will protect both me and the seller in the essence that the end buyer doesn’t hold up their end of the bargain. I’m not lying to seller because we are on the same page, his only goal is the avoid large capital gains tax and secure our negotiated purchase price. 

My intentions here is to seek your knowledge in if it is possible for both to be done in the essence of the end buyer being a fix and flipper or does it half to be a buy and hold end buyer for both needs of the seller and myself to be accomplished?

I appreciate your feedback also!

 @Wayne Brooks It would but again that’s not the sellers intent and also that is not my intent(in regards to manipulating the situation) hence me seeking knowledge from you all. Upon us speaking the only goal is to avoid capital gains taxes.

I am only seeking this platform’s knowledge to know if it is possible for both to be accomplished the right way. Seller getting their cash while avoiding capital gains taxes and me assigning the deal. If I should only pursue seller finance buyers or if I can expand buy pool to fix and flippers also.

 @David M. the contract I have protects both of us and I’m going to find perspective buyers that fits the needs for the deal for the seller to win and me. I just only dealt with flippers o I was trying to see if I can pitch this deal to the flippers also with the seller avoiding capital gains taxes. 

@David M. True, but I would never go into it with the intent or end goal to pull a dirty trick. My goal here is to have a greater understanding of the framework and routes I can take for the seller to get what he wants and needs and I can assume my fee. I’ve only done the traditional wholesale transactions but this is new to me in the essence of a seller finance deal. 

We’ve spoken extensively and his main purpose is just to avoid huge capital gains tax and that’s why he chose the seller finance route. 

I really do appreciate your feedback it helping me understand different nuances in this route.