All Forum Posts by: Jimmy Hong

Thanks @C Meddy.  

Hi @Bryan Hancock, that makes a lot of sense.  I've been communicating with my accountant on my goals and he seems to understand.  I'll report back with updates.  Thanks for your input.   

I forgot to mention, just do your due diligence as you normally would.  For my property, I couldn't go inside or have an inspection done, but I tried to cover all the other bases, such as clear title, driving by property, review all the docs and have other professionals (agents, brokers, etc) double check the docs.  

@Kevin Reid , You are not liable for the purchase of the property or need to pay any fees if the reserved minimum is not met, after you win the auction.  You'll get an email from asset manager or bank confirming if you want to pay the reserve minimum (if its not met(.  Then it goes through escrow, and I had to pay about 2.14% of purchase price for deposit.

The seller paid all the costs of the auction fees, I only paid my portion of the title fees.  That's about it, and escrow scheduled to close tomorrow.

You gotta meet the reserve minimum, even if you win the bid.  Auction site is legit though, I just purchased a property in Orange County via Hubzu.  I won the auction but didn't meet the minimum.  Checked and rechecked the numbers to confirm if the minimum is still a worthwhile investment and it did.  Everything checks out I am closing escrow on this property tomorrow.  

Now there are still people living in the property and I will be starting a eviction process but that's a whole another story... 

@Colleen F., yes that's exactly what I mean.  Thanks for advice and sorry I was not very clear on my question.  

@Matthew Kreitzer @Brandon Hall

I haven't done anything yet.  My long time cpa, whom I trust, have been filing our tax returns.  Just to be clear, my question isn't about breaking any laws.  But as previous business owner, I know filing for taxes can be flexible to a certain limit, such as meals, cell phones, car payments under business or personal, etc.  I dunno, am I way off base here?  Guess that's why I'm asking...

Thanks for advice @Victor Argueta

Does anyone intentionally report higher taxable income (and obviously pay higher taxes) so they can qualify for financing, such as heloc or business line of credit?

I understand there are alternative methods such as hard money, private money, and seller financing, and I do use private money and hard money as well.  I sold my small business and my wife quit her corporate job several years ago and we are now rehabbing full time in Orange County.  We've been deducting everything last few years and paying lower taxes.  

We have ton of equity in our primary house but I'm concerned we're not proving enough income.  Also, our local business bank have a line of credit product for rehabbers but we're been rejected for same reasoning of not enough income in our tax returns.  

These other options will be great alternatives.  Should we just bite the bullet and pay hefty taxes to get access to these options?

Thanks in advance,

Jimmy Hong

www.blueapexinvestments.com

Thanks for the details and great start.  Rooting for you.  

$3000 for an appraisal?  That is very high and I seriously doubt just because he is appraising a mhp.  Call 3 more companies and get their rates, that'll help you evaluate the appraisal price.  Best of luck and keep us updated.  

As a flipper, let's not break down Cory too much, his topic means well and no one disagrees buy and hold is an intelligent strategy. 

Keep proud Cory, us flippers will continue as well and hopefully we will all get to our goal of financial freedom.