All Forum Posts by: Brandon Craig

Hi all.  I was wondering if someone could explain the tax implications for both sides of an owner financing deal for a rental property?  I am just starting to research this financing strategy and I'm wondering how much the length of payment benefits a seller in terms of capital gains tax.  In addition, is there any difference from a conventional mortgage regarding interest payment write offs for the buyer?  Any input is appreciated!

 Jim, thank you for your response.  I'll admit this post came partly out of frustration after a recent meeting with a mortgage lender.  I realized I may struggle a bit with receiving my first loan (due to limited 2 year proof of income) for the type of duplex property I really want to pursue.  But since then I've done more research and learned there are much better solutions, using creative financing.  I also may be underestimating the ability of the excellent lender I'm working with to make something happen for me.  

I agree that I could much better devote my time to obtaining the equity type of property you mentioned. And finally, after considering the area of the condo my friend owns, I realized that it may attract undesirable tenants.  

So I have since abandoned this unwise investment of my limited capital and time.  I am learning much more about the power of leverage, especially when starting out.  But thank you for your input and confirmation that this is not a deal I should pursue!

While I'm just getting started on BP, I love the calculators and their ability to make analyzing a deal possible for beginners like me.  However, I was wondering if some type of printable cheat sheet exists on BP to write down all the inputs I'll need for the calculators?  I think something like this would be useful for newbies trying gather all the information as they search for deals.

Congrats on the duplex and thanks for the insight!  I'll definitely be adding the no/low downpayment book to my list of reads.  Good luck with closing next week!

I was offered to buy a rental condo in my area for $40K from an older friend of mine (probably a $5K discount from its value).  While I only have about 25K to start my investing career, I thought of an interesting way to potentially acquire the rental property...

My friend owns and operates a relatively large landscaping company in our neighborhood.  I too own a smaller landscaping business, and we've worked together in the past.  I thought what if I offered to pay him 20K for the property up front and in addition, I could work off the remaining balance by providing x amount of hours of labor over the next 2 landscaping seasons.  This would not only allow me to acquire the property without paying interest on a loan, but it would also create a more solid business relationship with an already great mentor in the industry.

Has anyone attempted something similar to this?  And is this idea crazy?

Hi all! My name is Brandon (not the famous one) Craig.  I'm 25 years old and I live just outside of Philadelphia in Delaware County.  I've developed a tremendous interest in real estate, thanks to BP, and I'm itching to get going.  My current plan is to start with a duplex, renting out one unit and living in the other as I make repairs/improvements.  

I actually just got home from a pre-approval meeting and realized I may run into a struggle receiving a loan right off the bat.  I've worked in various jobs over the past 4 years with sporadic flows of income from each.  I've worked as a licensed athletic trainer, a maintenance technician for a local school/church, a package handler at FedEx Express, and I own and operate a small landscaping company.  As many of you probably know (and I just learned), proof of a consistent flow of income from the same employer for 2+ years is extremely important when it comes to receiving a loan (regardless of my excellent credit score and lack of debt).  I left the pre-approval meeting bummed out that I might not be approved for the amount needed to buy the duplex I have my eye on.  Then I quickly decided that I wasn't going to let this stumble out the gate stop me from my pursuit.  So while I wait for word from the mortgage lender, I am currently brainstorming ideas for other potential plans of action.

Sorry for that lengthy introduction, but I'm excited to join the BP community!