All Forum Posts by: Dan S.

@Linda Weygant thanks for your reply - looking into it more

Right - as I understand - it's a capital gain, short term (you are not a dealer), and the net profit on the entire project is reported on your taxes in 2019  (this is how my accountant explained for my flip).

@Mike McCarthy what is PUC?

I would advise you to ask on Bigger Pockets, and then ask a real estate lawyer from Massachusetts (someone from that town) about the laws surrounding the situation. I would want to follow the letter of law, particularly in a tenant friendly state - so that I didn't do anything to jeopardize my situation, where you ended up hurting yourself due to some technicality.

Hey folks,

Looking for advice on a situation where I closed on a house through settlement company on 6/29 and about a month later was sent a bill by the water company for $300 for a meter that was put in before settlement 6/20.  I reached out to title company and they said when they called the Water Dept. before settlement they were not told of this charge and thus it wasn't on the closing doc (and paid by seller).  I was told by title company that the water department messed up their paper work at the time and they forgot to report it. Then, they discovered the charge, and sent it to me. The title company is saying, sorry, we weren't told about it, so it's on the water company. Water company is saying, sorry, your title company reported the wrong number on settlement (or even if we did mess up - it's still on you - it's a lien- and we take no responsibility for our mess up.) I spoke to water department yesterday (because I haven't given up yet) and they said deal with your title company --- before I reached back out (again) to title company to say --- I'm not eating this whole thing myself or I am not using you again--- I wanted to reach out to the forum..... is there any statute? I'm sure it is township by township... anything in the title insurance that would insure me from paying this?

Thanks in advance.

@Joe Villeneuve - when you mean a loan - you were referring to what kind of loan?

Approx. $400 a month without the loan.

Loan payments of $41K on 30 year are $239 a month reducing cash flow to about $160 a month.

So @Joe Villeneuve I would say X person gets 50% of cash flow for a 40K loan. Do I need an amortization schedule? How would this work?

@Joe Villeneuve - a cash partner who wants 5.75% for 30 years?

@Jason Hirko, @Jay Hurst, @Joe Villeneuve - thank you for your replies... makes sense -- so the term I learned was delayed financing... I hear you all that if I am just taking out what I put in then no seasoning needed  - the problem is I can't get a conventional for below 50K I am told so far. So, @Jay Hurst since this is the case, as you mention, I would need a "portfolio loan" with no seasoning with a solid appraisal at 60K, I could pull 70% out (42K) my purchase amount. Do you know portfolio lenders who will deal with those low numbers?

@Account Closed - thanks!