All Forum Posts by: Bobby Clifford

Hello! I am looking at putting a cash offer in on an on frame modular HUD property. I would be using my own HELOC for the purchase and would like to get a cash out mortgage on it after the initial holding period. Anyone have any advice on where I should look for financing? It appears that the banks I have looked at will not do an on frame modular. The property does come with its own property and is on a permanent foundation. I do have a mortgage on my primary residence but it’s not an FHA loan. I do not intend on moving into the investment property. Any advice would be appreciated!

Not that anyone replied, but, I have found out the answer from a local attorney. First line is all that matters. We decided against the property upon closer inspection. It appears to be a good flip prospect but that’s not what we are in the market for at this time.

Hello! I’m trying to buy my first investment property. I found one that I’m interested in. It’s in a nice area and the homes around it are b-c condition. I went to the home today and parked across the street at a church. I got lucky and met with the home owner that lives across the street. He filled me in with what he knew. 1. Owner is dead with no will and no next of kin. 2. He was a hoarder but said there was a few people in there a while back cleaning it out. 3. Said he believed it would be in good condition. Said the roof had been replaced about 3 years ago. 4. Said once the owner turned 69 started taking loans on the property to fund his hooker problem. 5. There is a nice mid 2000 dodge truck in the driveway and a new husq zero turn mower in the garage. 6. 4 bed 1 bath and 2300sq feet. Brick home. I did a quick title search and came back with 4 liens from the same lender for 25-38k. My a friend of mine said all I need to do is make sure the foreclosure is on the first line against the property and if the auction is won, the rest goes away. Currently it’s at a price I can pay with cash and it expires on Monday. Any help is appreciated!!

I’m not sure if you had found any other investors but there is a great group that meets every month in Hickory. They usually have guest speakers and a great group of investors. I haven’t been I a while but we are planning on buying out for first rental this year so I’ll be going back soon. I hope all is well since the post! https://catawbavalleylandlords.com

I was doing some reading and came across this and if I am reading it correctly disqualifies your realtor time anyways. "In computing whether the taxpayer materially participated, the Tax Court has held that a taxpayer cannot elect to combine his activities as a real estate salesman with his rental real estate activities." Also, Brandon Hall can you clarify the no specific hour requirement sentence below? The active participation standard can be satisfied without regular, continuous, and substantial involvement in an activity; the standard is satisfied if the taxpayer participates in a significant and bona fide sense in making management decisions (such as approving new tenants, deciding on rental terms, approving capital expenditures) or arranging for others to provide services such as repairs. An IRS training manual states: As long as a taxpayer participates in management decisions in a bona fide sense, he actively participated in the real estate rental activity. There is no specific hour requirement. However, the taxpayer must be exercising independent judgment and not simply ratifying decisions made by a manager.

I listened to Brandon's podcast about real estate professionals.. very informative but I am still not understanding what actives qualify and what don't.. I know there are concerns about researching properties not counting? I'm just trying to understand which activities would qualify. Is it possible to achieve this status with a single property? Thanks.

Any luck? Im searching as well.. I might had a lead on a group purchase.

"All you will need to do is to work 750 hours in real estate and greater than half your time needs to be in real estate. This qualifies you as a real estate professional. That's step one. Step two is demonstrating that you materially participated in the rental activity. This is generally demonstrated by working 500 hours on your rentals." Can you be more specific as to what those activities are in step one and two. To me, it sounds as if the 500 hours and 750 if done correctly should come from the same basic tasks.

Brandon Hall

Brandon I enjoyed your podcast episode. I have thought about hiring you or Amanda Hann to do our taxes once we get going! You're definitely closer to me than Mrs. Hann. I have watched a bunch of videos on YouTube about qualifying as a RE pro for taxes and particularly with tax attorneys. One guy said if the IRS can disqualify you as an RE pro they can go back 3 years if the same conditions exist and get you for those years too. I am searching for a safe bet that I would be safe in a audit. I imagine I would have "losses" from real estate and my wife's income disqualifies us all together from taking advantage of those without the RE pro status. Also, I would hope we could maybe offset some of her tax burden as well but I'm not sure that's how it works.