All Forum Posts by: Ken M.

Quote from @Max Engel:

Does anyone have any advice for the current top strategies on finding these types of deals and properties off market? I've been doing a lot of doorknocking and it almost feels like a cold call talking to people through their ring camera. Is there a better strategy out there now than door knocking or is this just the growing pains?

These are the techniques I would avoid

https://www.azag.gov/sites/default/files/2025-03/CV2025-0084...

Quote from @Henry T.:

If you sell it you'll owe capital gains on whatever it has appreciated in value from the time your parents bought it.  Inheritance has nothing to do wtih this since they deeded it to you in 2006.  If they didn't quit claim, and you inherited it, you would owe no tax because of the step-up basis. But they did quit claim and now you owe if you decide sell. 15, 20, or 23.8 percent depending on your income.

That's not correct

Look up Capital Gains on Life Estate Property
"The remainderman receives an adjustment (step-up) in basis to the amount the property is worth on the date of the life tenant's death."

Quote from @Ned Carey:

@Cyndi Lees as @Ken M. said that sounds like a "life Estate"  I think that makes the transfer to you much simpler. See kens message above

According to https://vjrussolaw.com/life-estates-helpful-or-problematic-p... 

"If the owner of the property is also the life tenant, then the property will be included in their taxable estate and the property will receive a step up in basis to fair market value upon the life tenant’s demise. This step-up in basis can save capital gains taxes on a later sale of the residence.

For example, let’s say mom transfers the home to her daughter while retaining a life estate. If her tax basis in the home is $250,000 and the home is worth $1,000,000 on her demise, the tax basis will step up to $1,000,000 and if sold at that time, there would be no capital gains tax. In my example, the step up could potentially save as much as $200,000 in taxes.

Also, before transferring the property, one should be aware that the initial transfer to the remainder person is subject to gift tax laws for the full amount. For most people, this is not an issue because of the $12,680,000 federal gift and estate tax exemption."

NOTE:

This is me speaking, if you change the status to a rental, the whole scenario may change. So, know what your options are, before declaring it a rental.

Quote from @Cyndi Lees:

@Ned Carey my parents filed a quit claim deed they gave me the property upon their deaths. All I had to do was provide the state with their death certificates to get the property title in my name.

It May be a "Life Estate"
https://www.investopedia.com/terms/l/life-estate.asp

Advantages and Disadvantages of Life Estates

The most notable advantage of a life estate is that it simplifies the transfer of a home to the next generation. The probate process may delay the transfer if the home is included in the homeowner's will. The transfer is automatic with a life estate when a death certificate is filed.

There are potential tax benefits in addition to legal benefits:

• The life tenant may be eligible for some homestead or senior tax breaks as a homeowner.

  Internal Revenue Service. "Publication 530, Tax Information for Homeowners."

• The remainderman may receive a substantial capital gains tax break when and if the house is sold because its tax valuation will be based on its value at the time of the life tenant's death, not at the time it was purchased by the life tenant.

Quote from @Cyndi Lees:

I inherited a property in Arizona when my mom passed away last October and I'm finally getting around to figuring out what to do with it. I received the property through a guarantee deed (quick claim) that my parents filed in 2006.

I own my own home in California and I'm still paying a mortgage. If I sell the home in Arizona I can pay off my mortgage and have some left for retirement. I'm 67 years old and I barely make it on SS.

The house in Arizona is paid off so I could rent it out and it would be cash flowing. I'm trying to figure out how much I will owe in taxes if I sell it now or if I sell it after it's been a rental. Will it make a difference? I'm really emotionally attached to the house in Arizona so I'm leaning towards renting it out until I work through the grief however, I need to avoid paying a huge amount of inheritance tax. Any advice would be appreciated and I also could use a referral to a tax professional.

Thank you so much!

You don't say how much it is valued at, but if it was inherited properly and under the current dollar limit, there shouldn't be any federal Tax or AZ tax. California is so punitive for breathing, I don't know if they have an estate tax, never wanted to find out. ;-) Since you are on SS, there is probably a service locally, maybe a Sr. Center,  that will help you figure that out for free.

Quote from @Bryson Owensby:

Quote from @Ken M.:

Quote from @Bryson Owensby:

Have a property I’m looking at that’s in pre foreclosure in DFW. Contacted owner and she said it’s in probate. Is the lender able to foreclose during probate? Not sure how I should respond to the lady stating it is in probate even though it was listed for the foreclosure auction. 

Thanks in advance 

Yes, they can foreclose during probate. Only the owner or some court appointed probate personal representative can sell the property. If you contacted the owner, how is it in probate?

 The property was previously owned by a married couple. The husband passed in 2023 and the home was transferred into the wife’s name in 2024 via an affidavit of ownership.

I contacted the wife as she is the sole owner via the CAD, and she responded that it has to go through probate. Not sure how that works since she is the only one on title via the affidavit?

It can vary depending on how it was deeded. But, if the deed has right of survivorship, I'm not sure what she is thinking. However, if they held it each in their own estate, that presents a challenge, but you can look at the warranty deed online and determine if she has the right to sell. Or open escrow and the title company will let you know.

This is general information and the property location and the deceased location play a role, but it's most likely that she misunderstands her rights on this one.

Quote from @Bryson Owensby:

Have a property I’m looking at that’s in pre foreclosure in DFW. Contacted owner and she said it’s in probate. Is the lender able to foreclose during probate? Not sure how I should respond to the lady stating it is in probate even though it was listed for the foreclosure auction. 

Thanks in advance 

Yes, they can foreclose during probate. Only the owner or some court appointed probate personal representative can sell the property. If you contacted the owner, how is it in probate?

In March, Zimbaluk's company commissioned a study of Canadian consumers that found about 75% plan to cancel or reduce their travel plans to the U.S.

That impacted Flair's service out of Phoenix.

Another Canadian ultra-low-cost carrier, Lynx Air, went out of business in February 2024. It launched service out of Sky Harbor just a year earlier with a nonstop flight to Calgary and added a Toronto flight just months before its shutdown.

Does that account for stagnant sales of properties in Phoenix? That's an 18.5% increase in SFR's over 90 days DOM. Prices haven't really dropped yet, it's just that houses haven't sold.

Quote from @James Wise:

Quote from @Bob Avery:

Quote from @Ned Carey:

@Callie Mahoney From you limited details, I assume you were trying to buy the property or were you the owner trying to sell it? 

it sounds like the property you wanted to buy was in foreclosure. The person you tried to put it under contract with probably wasn't the owner. He was a "wholesaler" that had it under contract and was going to assign (sell) the contract to you. But the foreclosure happened before the deal could get done. 

It is also possible that you were dealing with the owner. But again the property went to sheriff sale before the deal could get done. So the owner went to the auction to buy his own property back. He used a different LLC to buy at the auction.

You mention your tools, why were they on the property if you didn't won it? 

         "Clearly I am needing some guidance on the situation"

Were here and trying to help. Unfortunately you descriptions aren't very clear as to what happened.  It seems to me that nothing is wrong here. it is all perfectly normal. You tried to do a deal that didn't get done in time, and the owner lost the house to a sheriff sale. This kind of thing happens.

Ned, Callie has mentioned a couple times that he has construction materials at the house, which makes it seem like he Callie was the seller, not the buyer. And then he had deal to sell at 250k which fell through, and the same buyer ended up getting the property at a Sheriff Sale for 200k a few weeks later.

 Trying to follow this is like watching two dolphins hump a football.

Very unclear and convoluted for sure.

Quote from @Patrick McMahon:

Finding a mentor is mentioned in every real estate book I have read so far. Whether it be from an individual or a group, receiving guidance from someone who has done what you are trying to do seems like a major step in getting started.

Im curious if people can attest to this and if so, how to go about finding this type of mentor/guidance.

I live in New York City but would love to hear about anyone's experiences.

Thanks

Not likely, because you are unlikely to follow the mentor's advice. I've tried to help over 60 people from Bigger Pockets (for free) and only one made the attempt to make offers. It's work, you have to be willing to put yourself on the line, it requires discipline, there are a lot of obstacles and most people think they get a trophy for showing up.

I could take an uneducated, street entertainer from Times Square and turn him into a producer, because he hustles (works hard, needs to be honest though), shows up, and loves being with people. It isn't rocket science, it's just sales.