All Forum Posts by: Glenn G.

In 2013, I purchased a property in my own name and renovated it and resold same....how do I report this on my taxes? Thanks in advance for any help...

Hi Jackie - Welcome from another Grand Junction rehabber...the next meeting for the Western Colorado REI is on Thurs Feb 27th at the Hampton Inn on Main Street at 6 pm...

Thanks all....I am an avid reader of BP. While I've bought and sold numerous properties over the years I have trouble getting up the courage to buy creatively (sub2, lease option)...probably could really expand if I did???

Caroline - Once she said she'd take the $100k cash offer I never mentioned any other number. When I saw the extent of the rehab I just told her that I'd still buy it for the $100k that we talked about with the only change being a request that she provide financing. After we talked for a while, the Seller became very comfortable with the idea. I bought title insurance and homeowners insurance with Seller named as loss payee. After closing, Seller told me that the house was a tremendous burden and she felt like a weight was off her shoulders. I haven't decided yet if I will refinance (and hold) or sell when I'm done but either way I won't leave her holding the loan too long.

I sent out one letter, made one offer that I thought was crazy, and bought a house! My letter campaign is batting 1000...

Seller called me from an ad I ran in the local pennysaver. Seller owned the house free and clear and wanted $180k all cash and quick close due to moving out of state. I thought the house was worth about $225k. We talked for a while and agreed to talk again in a day or so to allow me to research the property. Well, Seller disappeared for a few weeks and I about wrote it off.

I decided to write a letter and send it to the empty property. I floated three ideas for the Seller to think about: $180k owner financed with $10k down, $150k on a lease option, and finally $100k cash. Weeks went by and I forgot all about it. I thought the letter probably never even reached the Seller.

Then I got a voice message asking for a call. When I called the Seller, she said I'll take your offer. I asked which one she was interested in and she said she'd take the $100k cash offer. We set an appointment to see the house the next day. When I got there the Seller was embarrassed to let me in and told me that it needed lots of work (which she hadn't told me prior). I said no problem and that I've rehabbed houses before. The place wasn't to bad really and I'm expecting $20k - $25k in rehab.

I told the Seller that I'd like to buy the house but since it was a rehab I asked her to finance it. I told her I could use my existing funds to renovate and she would get monthly income in the meantime. She agreed to $10k down and financed $90k at 6% for 30 years.

We closed on the property this morning and so the rehab begins...

I still can't believe this one. I've played around with rehabs and rentals for years while maintaining a full time job. This is the only marketing letter I've ever sent out! A home run on the first pitch!

Thanks for your responses...met with Seller again and he is more comfortable with a Lease Option. Also, I made a mistake with his monthly payment...it's 1000, not 1100. After further inspection of the home, I think I could push rent to $1200 so I'd have almost a 200 spread. Home is in great shape, large detached garage, nice yard, and they're leaving all appliances. I'd set my option price at the mortgage payoff amount and set tenant/buyer at 150 or 155. I'm getting more and more interested in this deal because I'm putting in no money....

I have a Seller who is willing to do Sub 2, Contract for Deed or a Lease Option to get out from under payment. Seller wants to retire and leave the area. He boght the house 5 years ago for $190k and it's now worth $150K. His mortgage balance is $150k. His payment is $1100 month and it would rent for $1100 per month. Sooo....no spread at all. I was thinking of structuring owner financing and pass on same to a Buyer, collecting a down payment in between. Any thoughts are appreciated.

Was hoping for some help...here's the Colorado statute:

TITLE 38 PROPERTY – REAL AND PERSONAL REAL PROPERTY
Conveyancing and Evidence of Title
ARTICLE 35 Conveyancing and Recording
PART 1 GENERAL PROVISIONS
38-35-126. Contract for deed – escrow of tax moneys – written notice.

A little known regulation in Colorado requires the County Public Trustee to escrow property taxes for all ILC sales and in addition, requires notice to the County Tax Assessor of all ILC transfers. Failure to do so nullifies the ILC and can result in ALL monies returned to the ILC buyer. How are you Colorado investors dealing with this? Thanks in advance for an replies...