All Forum Posts by: Lucas Gunderson

Thank you for the responses. You all touched on the same ideas that I had in my head. I'm going to do some more research just to make sure what the full price will be for funding the loan and splitting the commission. If I don't have to close the loan and use any of their money I really don't have as much of a need for them as before. Thanks all.

I've been doing my due diligence on REI but have not taken the leap yet on my first deal. I'm apprehensive of stepping out on my own and not wanting to learn "the hard way". Recently I came in contact with several investors who specialize in short sales. I met with them and they are looking to expand their network and bring people in to learn their system. I would do the majority of the work while they would offer me support and make sure that I am staying on track. They would also offer the hard money used to fund the loan before the new buyer purchases the property. The profit is split 50/50 between myself and the other investor.

Two questions:

1. Is this a smart move?
2. Do you need to close out the original loan that is negotiated with the bank before the property is sold to the buyer?

Thanks.

I've got some tax questions for all of you pros out there. When flipping homes, what is the best way to structure your company so that your tax liability is decreased? I've talked with several people and they have stated that capital gains tax can run anywhere between 20 and 40%.

Are people factoring this into their potential profit? I study these LTV ratios and look at repair costs, realtor costs, closing costs, and carrying costs. I rarely see anything on the tax end. Can someone please explain so that I can be prepared and somehow factor this in to get the most profit at the end of the year? The government never seems to give money away so I don't want to either.

Thanks to all...this web forum is the best!

Can someone give me some insight on this? I have researched on the web but not fully understanding how you can become the owner through this process. Sites are making it seem like you can purchase these homes for pennies on the dollar because the government is owed taxes on them. The mortgage must still exist. I contacted a rep at the auditors office in the state I'm living and she let me know when the next auction was taking place. She said none of the homes will even make it to the auction because all taxes will be paid and this is actually there to protect them. Please give more info.

Thanks.

Thanks for the reply. I just happened to browse to the HUD section on this site and found exactly what you were saying about being an owner occupant. Only problem is, the HUD's that are listed are very minimal and haven't had the potential we're looking for. Patience, patience.

I've constantly had my eye on the quick, big prize of flipping properties but have recently had a reality check and realized that maybe this isn't the best route to go. Can someone give me some insight on proper investment strategies? We are relocating to a new area and I have a great job. We're looking to start an investment portfolio by finding a way to make good/great money on a first deal and growing steadily from there. We both have outstanding credit and have been looking at HUD and foreclosures. We thought about the possibility of renting (it would be paid temporarily) while we tried to do a quick flip, but we realize we need more experience before we jump in the boat with no paddles. We are now looking to find a HUD/foreclosure that is liveable and living in the place while we renovate...even if this takes a year. Are we looking at this from the right perspective? Can the return still be high? Can we even find a liveable HUD/foreclosure and how difficult will this be?

I am relocating to the Salt Lake area and am interested in REI. If anybody knows information about this area could you please pass it along. I'm trying to do some preliminary research (good areas to live, high appreciation areas) but it is very hard without being there. So, if anybody could pass along some info for some contacts or clubs I would appreciate it.

Thank you.

Thanks for the tips. I never even thought of it that way. My attempt was to be able to finance the renovation without any money down and with the primary residence I could do that. Do you guys have any other advice on how I can do this with no money down? The home could potentially become the primary residence if it doesn't sell in the timeframe needed. Any more info would be appreciated.

Thanks again!

Hello all,

I stumbled across this site and it rocks. I watch the flipping on tv all the time and think to myself, "These people have no idea what they're doing and they're making $50k a deal." I think I can do it. I'm deciding to go full swing. I'm relocating to Salt Lake City and going to take the plunge. Here's the deal...my company is covering my housing for the first three months...so I'm thinking to myself: Why not find a great rehab that I can claim as my primary residence while my rent is covered, flip it (or live in it if it doesn't sell immediately) and then turn around and buy my home and have money left to keep my investment dream alive. Is this crazy or what?