All Forum Posts by: Brian Huber

Thanks all for the great information. Much appreciated!

@Bill Gulley and @Rick Harmon, thanks for your responses. It's still sinking in, but this is very helpful!

Hi, I'm planning on launching a direct mail campaign and hopefully there will be leads in which I can use Subject To and Seller Financing to solve problems and get some cash flow.

My concern is what the limitations are to these transactions as they relate to this legislation. I've been checking other threads and it seems to become very convoluted very quickly!

Can someone share what are the biggest things to watch out for in the interest of compliance? Is it the number of these transactions per year?  Full disclosure to the seller? I was not planning on getting my RE license.

Any assistance with this would be greatly appreciated.  Thanks!

Hi, I've contacted a couple of attorneys stating that I'm preparing to launch a direct mail campaign and there (hopefully) will be leads which I'll want to do Subject To or Seller Financing transactions.

I asked the attorneys how they typically handle these and they stated that once the deal materializes, that they can draw up the paperwork.

Is this the case for others? My concern is that I'll be paying a big chunk to an attorney per transaction which will definitely take away from profits.

Should I be approaching them in a different way?  I figured that once they draw up the paperwork, I can apply it to multiple deals and tweak minor details depending on the situation.

Any thoughts on this matter from the pros would be greatly appreciated. Thanks!

Hello,

Someone had told me that if you use a double-closing to complete a wholesale transaction that because you own the house for less than a year and a day, that it's subject to short-term capital gains tax.  Is that correct?

However if you simply assign the contract, then you're not subject to short-term cap gains.  Any truth to that?

Well done!  Do you mind sharing the details?  Did the seller reject a wholesale offer and then you offered the sub2?  Just curious how you set up the deal, paperwork wise...thanks!

Hi, it appears that that slide show is no longer active.  Any way I can get a hold of it or an equivalent presentation?  Thanks so much!

-Brian

Thank you for the insight, gentlemen!

Hi, I've been looking at properties in the $30-60K range.  Some of these need a lot of work.  For example, I'm looking at a house on Realtor.com in Charlotte, NC for $27,900 that probably needs the following:

New roof - $10K

new trim - $1K

new gutters - $1K

8 new windows - $3000

Wood floors refinished - $1K

Rehabbed kitchen and its floor - $6K

Just some very basic numbers, I'm looking at $22K in rehab costs, and this is on the low side, assuming that this work isn't as expensive in Charlotte AND the replacements are not high end materials.

The comps are scarce but seem to range from $45-55K, so let's call it $50.

So with the 70%, I'd offer:

70% of $50K is $35K -

$22K rehab costs-

$1000 carrying costs-

$3500 Commission fees & taxes upon sale = $8500 MAO

So this is pretty far from the initial asking price.  Is this just a bad deal?  I'm still new at this so any insight would be greatly appreciated.

Thanks!

Hi Chukwudi,

Just to compare notes, what aspects of Gwinnett and Rockdale attracted you to those areas.

Thanks!