All Forum Posts by: Jacob Michaels

I've got a purchase contract that I'm using to help market 33.09 acres rectangular block of raw commercial land on the I10W, near I10 & I110 intersection. Looking for potential buyers.

Seller is asking $15mil, and willing to finance with 10% down & 5.4% interest.

If anybody can help me market the property successfully I will make it worth your while. Any ideas?

I've got a purchase contract that I'm using to help market 33.09 acres rectangular block of raw commercial land on the I10W, near I10 & I110 intersection. Looking for potential buyers.

Seller is asking $15mil, and willing to finance with 10% down & 5.4% interest.

If anybody can help me market the property successfully I will make it worth your while.

jacob (at) exceptionaldigs.com

@Jon Holdman FYI because I thought you'd be interested: I have heard it regularly called "open escrow" in Texas as well, at least among local investors in Austin

@Wendell De Guzman When you have the code violations list do you usually just mail directly to that list, or dig deeper to find out if the owner is absentee and mail to them?

I would guess that a lot/most of the ones on the list would be absentee?

By the way, Brian, I like your technique. It's bold to call them out when they're not helpful and it got you results. Good tip on the gift cert too.

@Bill Gulley

Thank you all for your very helpful and detailed responses.

Ok, it sounds like I should just avoid talking to her about any tax issues, as it sounds horribly complicated. I'll probably avoid this one for now.

Thanks again!

@David Turner As everyone else has said, congrats on your successful purchase of the apartment complex! Would you mind giving us an update, since it's been a couple months into it now?

I've been curious as to how quickly your complex can get leased and what kind of carrying costs you've budgeted. I think you said the previous owner had the property only 25% tenanted.

Also, was this your first REI deal, or have you previously been investing in SFR or other before jumping ahead with the apartment deal?

Thanks @Steven Hamilton II

So, you're saying I can't right now present her with any real tax positives to selling now.

You mentioned a "Master Lease". I'm not sure how that would work. Do you know if Master Leases are legal in Texas? I know that lease-options are popular everywhere else, but for practical purposes they're not doable in Texas.

Thanks

Thanks, @Dave Toelkes , for the thorough answer.

To make sure I understand correctly, you're saying that if she sells now, she would have to pay capital gains taxes of 15%, and there would be some unrecaptured depreciation that would have to be factored in somehow. But, if she waits to pass on her properties to her heirs there is no capital gains tax, or other taxes involved?

And how is unrecaptured depreciation factored in, both before death and after inheritance?

Are there no significant benefits that she could receive if she sold to me now, via any method (cash, owner-finance, options, etc)? I would prefer to be able to make a deal now, that is also good for her.

Thanks again in advance, I know I'm asking a lot of questions.

Thanks, Dave, for the thorough answer.

To make sure I understand correctly, you're saying that if she sells now, she would have to pay capital gains taxes of 15%, and there would be some unrecaptured depreciation that would have to be factored in somehow. But, if she waits to pass on her properties to her heirs there is no capital gains tax, or other taxes involved?

Are there no significant benefits that she could receive if she sold to me now, via any method (cash, owner-finance, options, etc)? I would prefer to be able to make a deal now, that is also good for her.

Hello all,

I'm talking with a seller who is fairly motivated as she is quite elderly (even has a great great grandson). She owns a few properties, each worth about $100,000 and is thinking of selling them. She owns them free-and-clear, so although she wants cash I think seller financing could be a possibility.

My question is how can I pitch her the benefits of seller financing for her situation? She has a will and her grandson is the executor. She is planning on giving the proceeds from the sales to her heirs.

I would like to find a way to explain the pros and cons of selling a house traditionally (for cash, from her perspective), and with seller financing (again, from her perspective). If she sells for cash, she'll be hit with capital gains of 15%, from what I understand. I want to use that somehow to persuade her towards the seller financing option.

I heard there is some kind of $10,000 gift limit that one can give their family members each year. If I were to structure a sale with some interest paid to her each year, and she were to receive let's say exactly $10,000 as income, could that $10,000 be given directly to one of her heirs either before or after she passes and could it pass to them tax-free?

I'm not sure if my question makes sense or not, but I hope you understand what I'm getting at, in trying to explain the tax advantages of owner financing versus the seller selling for cash.

I really appreciate anyone knowledgable taking the time to reply in advance!

Jacob