All Forum Posts by: Edwin Brown

Not a tax expert, but I would think it's forgiven debt, so you do have to pay taxes on the forgiven amount. In order for the seller not to have to pay taxes on the amount he will need to 1099 you the difference. Just my opinion.

What is the big liability with a master key?

Paying cash for houses is a safer slower way to grow your business. Financing is a riskier faster way to grow. Know your comfort level of risk and growth and go with it. Hard to lose money on paid for properties.

Look and see if there is a local investors group in your area. That's going to be your best bet on finding someone to take this deal.

If you screen your buyers carefully, you could pick one that just needs some help to clean up their credit. Clean them up and let them refinance to cash you out. You'll get a lot more cashout that way.
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Vanessa, looks like the answer is there are no federal rules, but you would be wise to check on the regs of your state. I suggest visiting the local REIA group. They will know what is off limits for your area.

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As for bad credit, that's par for the course these days. It's hard to answer your question with the info you provide. Also, it depends on what you want out of the tenant. Are you interested in selling to the tenant or is it a pure rental?

To better understand the market, i would sign up for every wholesalers list in your area. Just getting their emails you should get a good feel for what deals are worth in different areas. Then as you find deals, you'll know whether they have any value or not.

If you can get them for a good price, someone will want to buy them. If no one wants to buy them you are paying too much. Best way to know is take a couple prospective buyers by the area and see what they would want to pay.

What's the best way to get started in a new market? I'm moving to Chattanooga and would like to know what everyone thinks is the best method to get started.