All Forum Posts by: Jean Sanchez

@Adrien S. Thanks for the explanation. This is my first cash deal and first deal in a new state, so it is different from all my other real estate transactions. Now I get it. Thanks for taking the time to help out the newbie ; )

@Vilena G. If you can hack living in the flip for 2 years (perhaps stay there and work on another flip), you can avoid paying a large percentage of your profit to the feds in taxes. Not sure your tax bracket or the profit you are shooting for, but if either is large you should consider it. File fir homestead ASAP when you move in.

Hey Everyone,

Just getting started in real estate investing in Indiana with my first wholesale contract assignment. The deal is only $32,400, no agents, all cash- no mortgage, escrow, or any of the fees that go with originating a mortgage or mortgage insurance, no inspection (since there is a building, but it’s mostly for the land), we have a survey that was done a year ago so no new survey. So I am wondering why my closing costs are estimated to be $1,100-$1,500? This is my first deal since we moved to Indiana, and I understand the specific cost of title search, title insurance, and prep of the deed, but are general closing fees super high in Indiana? I am in the process of another deal with a realtor for around 75k, which is also a cash deal (but involved a number of specific inspections) and the estimated closing fees there are just shy of $600. I understand that in the wholesale deal that as the buyer I pay all the closing fees, but without all the above listed elements of a typical closing, I just wonder what could be behind the difference. I’d love to hear your thoughts before I start to question it with the folks involved. Thanks so much for helping me navigate these first couple deals!

@Kyle J. Thanks! Yes that was what I was attempting to get at. Thanks so much for your insight. I want to get the tax benefit of a loan on the property (as well as get my $ back out sooner rather than later), but I am just hitting road blocks with financing either the traditional way or with a refi, but the local credit union will do a home equity loan on the property.

Thanks again for both your deft interpretation of my rambling and your insight into my tax question.

Cheers!!

Hi Everyone!

I have recently gone under contract for my first duplex in Indiana and it is a cash deal for $75,000. I could not get a conventional mortgage for 2 reasons: a.) the loan amount was too small; b.) we just moved and I am between jobs. I have been trying to study up on tax law and I understand that there are no tax incentives or really financial incentives to buying a property all cash (except the equity piece) and I also know that refinancing will be challenging given that even ARV will be in the low range, but I am wondering if I can get the same tax interest benefits if I can get a HELOC on the property and use that to make down payments on further property? For what I have read the interest on HELOCs on investment property are still deductible, so wouldn't that be the same tax advantage as I would get if I had traditionally financed or refinanced (maybe even better since my HELOC will likely be at a higher interest rate)? I hope that wasn't too convoluted. Thanks for any advice in advance!!

Awesome! Thanks David. I'll be there : )

Happy rainy Thursday afternoon,

I am brand new to the South Bend area (moved up from Houston,Texas for my husband's job) and brand new to real estate investing. I am under contract for my first duplex in South Bend and would love to connect to local investors who could give recommendations on insurance providers, contractors (it's a whole different world up here when it comes to getting work done around the house : ), lenders, and any other specialties I have yet to consider. I have already joined REIA-NCI and can't wait until the group starts to meet again in person. Until then I hope that folks on here can help me get started with some references. Thank you so much in advance!