All Forum Posts by: David Garcia

Thank you everyone for these thoughtful contributions. I will be reading the IRS rules referred to this weekend, good times! To clarify, I bought the note from the previous owner, who sold the home and took back the note. I never owned or sold the property.
We did an Assignment of the note and recorded a 1st Trust Deed. Also, the payments are interest only with the entire $90,000 principle due in two years.

I own a First Mortgage Real Estate Note with a face value of $90K. I paid $72K for the note, which has a balloon payment in 2 years. Does anyone know the tax implications, if any, when I realize the $18K gain from the discount on the Note? I have tried to research this in the IRS code and can’t seem to find anything that describes the treatment of this. Thank you in advance for your input.

You are an inspiration to others who need to know that working hard pays off, Congratulations!

MLS is absolutely best.

In my experience, this is a cost of business to the property owner.

Raise your rents, but leave them 10-12% below market, you will not lose tenants, you will improve cash flow.

Uplifting testimonial.

My first real estate partner used to say don't believe anything you hear, and only half of what you see.

Congratulations, Oliver.
Nice looking numbers.

Nice job, James, congratulations!