All Forum Posts by: Account Closed

@Steve Morris I agree that that would be the easiest route however he doesn’t want to leave any decisions to them once he’s gone. Can he put all his properties in a trust now with his children as the beneficiaries and still maintain 100% control until he passes? 

@Farrukh Amini Thanks for the ideas. That makes most sense to me as his #1 priority is seeing they all sell and that there is NOTHING 0 for the children to fight over...although siblings always seem to find a way. 

Hi everyone,

This is sort of an odd topic (and I’m not even sure this is even a possibility) but I have been conversing with an older gentleman who is terminally ill and believes he has 5-10 years left. He has 6 duplexes and wants to sell one each year for tax purposes. The money will go into a trust for his children to split once he has passed.

My understanding is that if he receives one lump sum he will pay taxes unless he uses a 1031 exchange which he doesn’t intend to do since he is liquidating. What do you think would be in his best interest if he isn’t in a rush to get all the money at once as it’s for his children? Seller financing?

I guess I’m wondering if there was to be a doctors note that states he is terminally ill, can the proceeds from a normal sale (cash, conventional loan) go into a trust without being pulverized by the irs? Going off the basis that his children are best friends and he wants to see that it stays that way after he is gone? Probably wishful thinking but I’m looking for a loophole to help him and his children save as much as possible. Thanks in advance!

I am interested in househacking a duplex that is FSBO and not listed anywhere online. 3/1.5 & 2/1 that are outdated. Asking is 500k though I know there is plenty of wiggle room to come down.

The gentleman believes he has 5-10 years to live so isn’t in a huge rush. He is liquidating because his kids have no interest in owning rentals and would rather have the money. 

Since one big payout doesn’t seem to be the motivation here I’m wondering what financing angles you (Bigger Pockets Members) think I have/ should present? My wife and I are pre-approved but I’m wondering if we can get around needing to use financing with a good down and a payoff schedule that benefits both parties? I feel like this isn’t an everyday opportunity would love some ideas with taking the next step. Thanks in advance!

I love Baja and my wife and I have been looking for a place in the Todos Santos/Cerritos area as well. I am not sure what the price is of your condo but I do know that cheap lots of land can be found and the cost of building is quite cheaper than it is in the states. There are currently many lots extremely close to the beach in Cerritos for well under $100k, some that already have cisterns/septic in place. My wife and I figure we could have a nice vacation rental/vacation home for around $150k. Depending on the speed of the developer it might be a quicker and cheaper option to build your own home? Worth looking into as I know condos in Cerritos aren’t cheap. Either way everything down there moves a lot slower than it does in the states so be prepared to play the waiting game. Best of luck!

Hi Kelsey, Welcome to BP (I am also new). My wife and I have been looking at buying in the Todos Santos/Cerritos area for a couple of years now. We have come close once to pulling the trigger and buying but it fell through. I’m not sure how I can help but the process seems to be more or less the same as here in the states though definitely slower. The parts that are a bit different are that financing is extremely hard to come by so that means all cash purchases the majority of the time and that unless you are a Mexican citizen you will never own the property outright. Basically you will “own” the right to lease for 50 years at a time and then it will need to be renewed. I hope this somehow helps. Feel free to reach out if you have any questions regarding real estate companies, websites, etc. 

-Kris

@Terrell Garren

Thank you for your response. They ended up postponing the auction until April so now I have time to figure out what it is I should know for next time. 

I wish they did 5% down here in CA. Unfortunately its all cash upfront which is nerve wracking especially to little fish such as myself.  

@CharitySkore

Thank you for the reply! I was looking for whatever would make sense to know before committing at the auction. Either way they decided to postpone the auction until April so it worked out and I can now be better prepared for next time! Thanks again

Hi Everyone,

I am new to BP and this is would be my first post, here it goes...I am looking to purchase my first property with a friend. Quick background on the subject property; To cut to the chase I am interested in a property that is up for auction tomorrow morning that I just found out about through a good friend. I called around and no one can pull a title report in such a short time period. From what I know, the owner is deceased, the property was left vacant and destroyed in a fire by squatters. (Now it is a lot with some (non-human) charred remains to clean up.) On the online auction sites it hints that there is still a home yet I know for a fact there is not. 

Local tax collector says property taxes are current (assumably paid for by the bank holding the note?) 

I know what I am willing to pay and know the comps in the area etc. I am also aware of the auction being an all-cash sale. 

With only hours left before the sale, what does everyone on BP suggest I do as far as due diligence? Also, if there is an IRS lean how can that affect me if I were to win said auction. (I know they have a 100 or 120 day window to purchase the property for what the winning big was.) I can live with the IRS reimbursing me but I would hate to owe them someone else’s debt. Thank you all in advance!!!

Kris Osborn

I have heard really good things about PropStream. If you are looking for something cheaper that will still get you owner names/mailing addresses check out LandGlide. I believe I am paying $9.99/month for it and it has been pretty helpful so far! Good luck!