All Forum Posts by: Mike W.

Completely depends on your level of financial/business astuteness and mindset. For many who are starting new into a journey of investing and financial awareness, it is a harmless, enjoyable, quick ready that you will get some good info out of. If you are financial savvy already or have a mindset for self motivated business endeavors, skip it. 

Studying up on landing pages as an investor. From what I can tell, having multiple landing pages with identical text and layout is a no-no. Also, I see that it is not recommended to have nav menus on landing pages.

My questions pertain to the "carrot" type sites. I see most "carrot" sites with multiple landing pages for different city/states. Many times a website will have 50+ landing pages, all identical except the town or city/state. Also, these landing pages have nav menus.

So what is the correct way to handle multiple landing pages for different locations based on what I have seen on the many, many carrot "like" sites?

Also, if no nav menu, and the viewer is not ready to commit to a CTA, do you lose them if no link or easy way to get back to the website for further review or info?

Can you speak to the specifics of purchasing a 6000# truck with a less than 6 foot bed? Most folks including car dealers dont realize there is limit on deductibility for the shorter beds.

I keep getting phone calls from what sounds like call centers, wanting to know if I want to sell my house. I don't but in an effort to educate myself I have said "yes" several times and answered their basic questions. I have NEVER gotten call back inspite of indicating that I was a willing seller in one of the hottest markets in the country.

So, my questions are:

1) Do these companies get leads then sell the leads to whoever will buy them or are they already contracted for a specific buyer?

2) Is this a successful tool/business model for getting leads assuming good mailing lists or do they turn people off like they do me?

3) How do contract callers charge, i.e. per call, per lead, etc

4) How do I go about finding a reputable person/service to cold call for me off of my list?

Thanks for any advice!

i am a long term buy and hold investor and have land in that area. There is pretty land there and there is very rugged, steep, unusable land there, with the latter being more prevalent. It is also somewhat the 'wild west" around there with the locals, they do not like outsiders in there area. Feel free o message me if you have any questions.

Basit Siddiqi, No, I have no intention of following the herd on tax treatment just because they say it can be done. I have always been a stickler on tax laws, in fact, I am probably overly conservative. I am a long term investor, not a flipper or wholesaler. I prefer lease income over gains. That being said, I occasionally let something go that does not meet my long term criteria anymore and since I am an active, licensed broker, that pushes me even closer to "dealer" status even though on volume alone I don't think I qualify but that is neither here nor there as I am not going to change that status.

What I am interested in Michael Plaks, is the devinition of "unimproved residential lots". I am not aware of this distinction as far as installment treatment and would like to learn more. When I do sell land, it is generally larger acreage tracts, 10-100 acres+. I assume this would not qualify for the exemption you are referring to? I would like to be able to mention it to my CPA if there is any way you could point me to specific language in the code that could help me.

Thanks for your assistance!

I am very well aware of the rules thus the reason I asked the question.

Are the guys who claim to be doing 5,10,20 deals per month and owner financing them really doing that many deals,  they cash heavy to start with, or are they ignoring the tax rules, This is my question.

In my experience, I cannot get ahead of the tax curve if I keep owner financing with low down payments especially considering I have to pay for marketing, closing costs, etc.  Even if the deal closes in January, assuming payment of estimated taxes, the is a revolving door of first year properties that I owe taxes on and not enough cash flow to cover them on top of everything else. Nobody every mentions this which is why I am wondering if the owner financing guys are really doing as many deals as they say.

New to the board here but have been reading for years. I am a seasoned (25 year) real estate investor and broker. I have searched this forum for answers and discussions but have not found anything so here goes...

For all of you wholesale real estate guys who specialize in owner financing, especially the land guys who now are so common, how do you handle your income taxes on the sale? My CPA has always indicated that as a land dealer, I lose the ability to 1) 1031 and 2) treat the sale as an installment sale for tax purposes. In other words even if I owner finance for 3-5 years, I have to pay the entire tax nut in the year I sell.

In this case, just as an example, if I buy a 15,000 lot for $1000, sell it for $6,000 and owner finance it, I will owe taxes on roughly $5000 in profit or $2000-$2500 in taxes. If I get little down payment and low monthly payment as many of the land wholesalers do, my annual cash flow will be negative  potentially depending on payment amount and when I start getting payments and when taxes are due.

My question is this, are all you  owner financing wholesalers  paying the income tax in the year of sell even if owner financed and how do you handle this unless you are starting out with a ton of cash?