All Forum Posts by: Kevin Beck

Hi I am fairly new to the forums, I want to talk to any experts or those with experience with auction.com

The particular property im looking at say it was previously valued at 275000(according to auction.com) the tax assest value is about 240k . The auction is currently at 115k, it also says reserve has not been met. with some further digging i found lender bought it for 150k. There is also a "pending case" on this property few questions:

1. Is there anyway we can find out the reserve from an offline broker? 

2. I am assuming the sale to the lender was 150k, does that mean that is typically the reserve? is there any relationship to the previously valued price that is listed in listing or tax assessed value?

3. when i looked up "liens and mortgage doc" i see there was a pending case for about 50k. is there a way to find out if more info on this in terms of its role in the house.

4. whats the typical process and strategies used for auction.com -- do people tend to fire when its expiring down,j if i bid and lose is there any deposit taken on my end? is there a deposit needed if I win the bid and how long til i need to come up with earnest money check?

just trying to learn more about the process and any helpful tips & tricks

@Ralph R. i understand tax is tax. but for example if the house was 300k and I have 3 investors each in for 100k who write me a check and I owe each 8%. 

My first question is: Can i close on the house in my name, with no issue. Does any formal paperwork need to be done of where i got the 300k to purchase the house?

question 2: lets say when all said and done,  since this property will be under my name, will my other personal sources of income cause any tax conflict? (this has come up because i was asked by the contractor if i would consider going 50/50 with him) if my personal income is 100k and this flip yields 100k profit and I pay the contractor who I partnered with 50k. Am I paying tax on the 50k I will walk away with? or on the 100k the house yeilded in profit and will my other 100k of income skew the taxes on this if i decide to go a 50/50 partnership

because the "LLC" would need to be active for 1 year.

I was just trying to protect my personal finances if anything would go wrong/ also to prevent high taxes if I didn't roll over money into another property by the end of the year

@Tom Sutherland I spoke with a bank officer today, she said if I plan to put the house in an "LLC" I wouldn't be eligible for a loan through that bank. She said if the house was bought in my name, an equity loan can be obtained and the property can later be transfered to an LLC. My only concern is I raised a majority of the capital for the purchase, would buying under my "name" have any advise tax stipulations? Wasn't sure how to properly set up each investors contribution and interest owed when purchasing under my name.

@George Despotopoulos what is the typical interest / money cost on a hard money lenders 

Hi new to forums, and to the world of real estate, Please excuse my ignorance if any, your feedback is greatly appreciated. I purchased my first investment property (2Fam) with cash (raised from investors)

The house was a foreclosure, plan to flip in about 60-75 days. House will close in about 10 days, sign P&S in my name, was thinking of switching to LLC at closing for tax purposes and to keep all investor money seperate from my personal finances. But I'm finding my new "LLC" wont qualify for any bank loans.

1. Am I better off purchasing home in my name? (how would i structure this for tax purposes with investors and interest I am paying to each)

2. What are my best loan types I should look into? 

3. Since the house was purchased cash, would taking an equity loan out be a viable option to finance the "flip"?