All Forum Posts by: Fernando Cardona

@Roy N. thanks 

I have been reading a book called the bankers code 

It talks about becoming the bank and using lines of credit from a bank to then do private lending.

If anyone is actually doing this and could give me some input about the tax implications.

Private lending tax implications when using line of credit. Suppose you lend at 10% and use a line of credit from a bank at 6%. Regarding the tax implications would you be subject to paying the difference in taxes. Say 4%?  Or would you be subject to taxes on the whole 10%?

Also tax implications in general on private lending, recommendations on how to keep track the amount to pay on taxes.

Any help is much appreciated.

Private lending tax implications when using line of credit.  Suppose you lend at 10% and use a line of credit from a bank at 6%.  Regarding the tax implications would you be subject to paying the difference in taxes. Say 4%?

Also tax implications in general on private lending, recommendations on how to keep track the amount to pay on taxes.

@Alexander Felice yes I wrote the price incorrectly it was selling price was 114,000 not 140,000... But yes thanks for the suggestions

@Andrew Johnson  As you state I don't have any properties.  I decided to learn about investing a few months ago.  

I do have enough for a downpayment in my bank account.  I have not been pre approved yet, because I began searching for a realtor last week.  

Honestly, I do not know the whole process.  But I was referred to another real estate agent by an investor, and I will meet with them this week and I will ask what the proper way of doing things.  

Gathering what you wrote before making any offers I will get pre-approved in a bank.

I asked here for a little guidance as I plan to make offers that would work for me.  I do not plan to make offers I think will be rejected because that would be pointless.  

But I wanted to know if it was ridiculous to ask for a property set at 114k would be seen as lowballing to offer 98k.  

I thought lowballing would be probably if its sells for 114k to offer 81k, because I would consider that ridiculous and a waste of time.

I guess I didn't explain myself well when I wrote the first time

thanks to all that have responded, and offered advice

Sorry the number was 114,000 asking price and the offer was 98,000

well I’ve been watching and learning a lot books and bigger pockets webinars and articles.  In one webinar Brandon says that it’s not the price it sells for it’s the price that works for you. He also says get a good real estate agent.

So I wrote in a Facebook group that I was looking for real estate agent.

A few people contact me.  And One person asks me that if I’m talking to other agents. That if I wanted to work with that person shouldn’t be talking to several as to not waste time.  

It made sense to me.  So I wrote back this.

I saw email.

Just so we are in the same page I will analize the properties you send me and I'll estimate for an 8% ROI.

And submit offers on the ones I think would work for me.

Is that okay with you? Meaning I expect to be rejected at least 9 out of 10 times.

Not going to write exactly what the person replied because I don’t think that’s appropriate.

The person replied something similar to this:

While she appreciates that I want to get a good return on my investment, this is considered low balling, and it’s not a good practice.  Most investors have an intent to purchase, and that is offering close to market value and id be best served with someone else.

Second question if a property is sold for 140000.  Offering 98,000 is that considered low balling?

Well any insight appreciated. I’m fairly new and don’t want to offense people. 

@Bob Okenwa thanks glad I asked 😀

Hello. I’m fairly new and I’ve been reading and learning much from the podcast and webinars here in BP.

Began using calculator and have looked at several properties. I have some money saved up for downpayment and have good credit.

Well I wanted to make an offer on a property.  They ask for 84k, when I run the numbers for it to work for me is max 62k.

If it was sold by owner wouldn’t hesitate, but for some reason think the real estate agent will black list me or something lol

Well getting to the question. 

1. Should I look at sold by owner and sold by agent as the same, when making offers?

2. If my max payable amount is 62k, at what point should I begin the negotiation with? I was thinking probably 55k

Any insight will be much appreciated.

@Michael Guzikmuch appreciated the insight.  I’ve only been living here for a few months so you are right have to learn about the market before doing anything.