All Forum Posts by: Carol Lam

Thank you for the reply.

I live in Bay Area.  After Powell said he will pencil in 3 rate cuts, the housing market started the craze again (Bay Area heavily tied to stock market).  Is it true direct sale from banks is not likely in a hot market?  

Can I buy REO property directly from a bank?  If the bank has taken the property as REO, then all the loans would have been forgiven, correct?  The title would also have been cleared.  Do I just call the REO department and make an offer?

Thank you for your information.

Carol

Thank you for this piece of information.  I almost sign the contract but decided not to after reading another post on this topic.

I cannot believe Tom would engage in such a deceitful business arrangement.  This business model was not disclosed in his book.  I was under the impression with the CPA I am talking to is that Tom is somehow overseeing the tax strategy set up for the clients.

carol

I found this company after reading Tom's book (Robert's tax person).  Why isn't there any good feedbacks from this firm?  Tom seems to be extremely knowledgeable about tax laws.  Is this arrangement purely tagging onto Tom's reputation?  These firms actually do not have anything to do with Tom's expertise in the area.

Quote from @Linda Weygant:

Tom Wheelwright doesn't know anything special.  The tax code is not a secret and there are many, many smart people out there who can, will and do interpret in your favor every day.  

Most very talented CPAs can/will advise you on tax strategy for a fraction of the cost..  Wheelwright just better at sales and marketing.  Holy crap - $25,000!!!

BiggerPockets has a tax professional referral page.  

https://www.biggerpockets.com/...

Every single pro on that page can give you everything that Wealthability does.  

Hi,
I found a foreclosure property that I am interested in.  Bank is foreclosing on the 1st loan.  If I won the bid, does it mean I won't be responsible for 2nd loans?  How about if there is an abstract judgment on the owner?  Would I be liable for the judgment amount? I know federal, state and property tax will need to be paid by the bidder.

What is the process for the buying the foreclosure property?  So far, I have done the following:

1) Identify property

2) Research on the property for loans and liens in the county recorder's office

3) Visit the property

4) Secure Title Company for its service when needed

Let's say， I won the bid.  I gave the trustee the cashier's check.  What's the next step?  I am not likely to bid on this property but I do want to learn about the trade as much as I can.

Thank you.

Carol

Is it possible to buy a title insurance on the foreclosed property before I decide to bid on the courthouse step?  I am interested in one property which I have done research on the County Recorder's Office and find that it has an abstract judgment on the owner.  The case is still active.  Does this judgment mean it has a lien on the property?  

What's the procedure like at buying a property at auction?  Say I am the highest bidder, then do I record the deed at the county myself?

Thank you.

Carol

It appears that in order to qualify for the criteria of a real estate professional, you can't have only out-of-state properties which are managed by third-parties.  I live in Bay Area therefore, my initial thought would be to own properties only in landlord friendly states.  But it looks like in order to reap the tax benefit of owning real estate properties, I need to have at least one property in bay area which i actively manage.  Is my interpretation correct?

Also, I am taking some on-line courses on real estate, do you know if those qualify for the 750 hours required by IRS?

Thank you.  

Carol

I have a defined benefit plan which allows for real estate investment, however, the purchase needs to be all cash.  I am considering rolling the fund over to an IRA that allows for real estate investment, do you know if I can leverage funds in IRA?  Can I borrow funds in IRA to purchase a property?

I was also told that for multifamily properties (5 and up), it is best to use interest only with a balloon payment loan program.  Does anyone have any opinion on the best loan program to use for multifamily investment properties?  We have excellent credit scores.  We also have sold our primary residence so we have very little debt exposure.

Thank you.

Carol

I found a foreclosure property with the following info:

Opening loan balances: 1.2 m

Starting bid: 1.2 m

Market value: 4.5

Income tax lien: 250k

Say, I won the bid at 2 m (impossible I know), that would clear the opening loan balances against property?(1.2m)

But I would need to pay back 250k back taxes?  There’s a way to find out how to settle these liens?

Thank you.

carol