All Forum Posts by: Fred Borek

thank you @Christina 

@Christina Yoon

the 2 percent was just for ease of calculation for the example. the AGR is 2.88 right now so it is possible. Look it up on IRS for yourself

Ok so what I am trying to clarify is the seller would get taxed for the income they recieved from the buyer. so if for example the tax rate is 2% and the buyer makes 12, 2000 dollar payments. the tax for the seller would be 480 for the year. correct?

Is imputed interest for the seller calculated off the entire amount or income received. eg is it taxed on the remaining balance like 200000 with 2 percent tax and 2000 a month payment would be 333 the first month, 330 the second month OR is it like if i pay 2000 a month for 12 months they would pay 2% of that which is 480. 

I am in chicago. I would be interested in a deal

Many thanks @Account Closed I didn't even think of it that when the deed transfers they wouldn't be able to refinance. I appreciate the sage wisdom. This is exactly what I was looking for. I have about 100k available So I am looking for a lower cost property to subto in Chicago area. Something that I won't overextend myself.

Starter questions are: what kinds of things can cause the bank to invoke the due on sale clause. If the funding has been coming from one source (the original owner) and then it starts getting drawn from your account will that throw a red flag?

What if the original owner opens a second mortgage on the house to cash in on the equity. Is this possible?

Thanks in advance! I am new here

Maybe I am just new and not understanding but for sub to you have the seller transfer the deed in your name and you pay their mortgage as normal so you don't get due on sale clause but if they have been paying for like 10 years and now the money comes from a different account doesn't that throw a red flag? Forgive my ignorance. just trying to learn.

Im interested. I will contact Oscar