All Forum Posts by: Mike H.

Thanks for all the replies. Re: not paying taxes up front - I could be very wrong, but I was under the assumption that (at least here in Michigan) - property can be transferred from one owner to the next (family or not) even though there may be taxes owner (or any other liens) on the property using a quitclaim. I only assume that because I see so many properties that have changed ownership with liens on the property from looking at property records in my county.

I'm very green in my understanding of deeds and their usefulness in particular scenarios so I may have caused some confusion there. But from the replies, it sounds like there is very little benefit in trying to delay paying taxes in the first place.

@Ned Carey, I'm derailing from the original post, but you mentioned that quit claims are lousy deeds, but in your opinion, are there any situations where they are useful, like in putting a rental property into an LLC? Obviously, the general consensus is yes, but I'm curious to learn about other options for that scenario (putting a rental property under an LLC), or just any useful applications of a QC in general.

Thanks

Thanks @Nick C. I understand. The only reason I'm considering not paying up front was to not tie up the cash in the short term if for whatever reason I didn't find an end buyer sooner than later. But your message has me leaning towards just closing via WD; I appreciate your input. Thank you!

@Nick C. maybe you’re making a vain judgement ¯\_(ツ)_/¯ so let me further explain for anyone thinking I’m putting money over integrity...

My intent is simply to defer these property taxes for me. I‘ll be the one to pay them, but it would come out of my profit from the sale once I have the buyer. Which I would close w/ a warranty deed and again be responsible for any liens on the property. As investors we take on risks for profit. This method allows me to help the seller in the short term, take the risk while I wait (because it just may not sell for what I expect), and profit from it later. Maybe I’m too anxious in trying to make this deal happen as the first wholesale deal for myself, but I’m simply preparing for a worst case scenario for myself if I have to buy it outright and hold it for a few months until I find the end buyer. I just don’t want to tie up all of the cash now but I see value in the deal which I why I am simply *exploring* this method.

Here are some numbers:

$4.5k to close via warranty deed which includes $1k to buyer and pays liens

Recent comps avg: $8k

By closing via QC I defer that $3.5k

Ha! For some reason “7 days ago” looked like “7 hours ago”. Disregard my question but I am interested in knowing when the next meeting is.

Is this meeting tonight - January 30 @ 7:30?

@Ned Carey thanks for replying. The only reason I’m considering a QC is that there are taxes owed on the property but it is not facing foreclosure this year. My thought is that a QC allows me to close for less by at least deferring taxes and foregoing title insurance and then take time looking for a buyer if I don’t find one by the close. 

I’m considering buying a small vacant lot that came my way from some direct mail. The seller already has it listed with a realtor. ls it possible to buy with a quit claim deed when a seller is selling through a real estate agent?

If I am buying a tenant occupied property, I know that I'm due prorated rent and the security deposit. However, if a tenant owes rent and is scheduled to pay after the property closes, how would the prorated rent be handled at closing?

@Sebby Gabre Madhin thanks for looking out and for the advice! You're absolutely right about learning the game. I plan to stay in so I've got to buckle down and learn. Also, very good point about the difference in the market from 2014 now and the availability of deals. One of my biggest issues is not connecting with the local REI community but that's changing now. I attended a meeting last week and a property crawl over the weekend. In addition to connecting with others locally and even here, I plan to get tuned into the resources available here and also revisit a few books and sit down and study as opposed to just listening while I'm working or driving.