All Forum Posts by: Nate Pucel

Ok, so I bought a house in March of this year for approx. 43000 with the intent of fixing it up and selling it. I have a 15 month commercial loan so I was hoping to have it completed and sold within the window of over a year and under 15 so I could take advantage of the long term capital gain tax. Here's my thought process on the sale- put approximately 30k in and sell for approx 140k, which I think is doable.

Here's the thing though, as I read, I don't know if id qualify as a dealer and be taxed as such, or as long term capital gains. The other thing is, I lost my job, which is good and bad bc now id be working on the house myself, which I've already renovated my own, and potentially save more money, which is pretty important since this will now be my income since I lost my job.

My conundrum on all this is 2 fold. Ive been offered around 80000 for the house as is, which after taxes and everything else, would be less than 20k profit, but still for really not doing much of anything. However, if I fix it up, I could make much more than this IF I'm not classified as a dealer. My question is, is it possible to not be classified as a dealer if I'm only fixing up this one property? I literally am just starting out, no office or staff or anything, just me- this wasn't even my plan, I just sort of fell into it since I lost my job due to Covid. I'm just trying to determine my best route going forward. Thanks in advance!

@Matthew Irish-Jones

Thanks for the reply. I received a pre approval for a loan when I signed the PA. The sale is subject to financing. I only received a pre approval for the loan, and noir suuuure if that means the bank would give me a loan given my unemployment? I only put down 500 earnest money at this point.

So as the title suggests, I signed the purchase agreement a few weeks ago for a potential rental property, then lost my job, but was told hopefully we'll be brought back in the future, but nothing is certain. I feel pretty sure no bank would give me a loan now without a job. And so I reached out to my realtor and told him this and his suggestion was to tell the seeking realtor what's happened and ask to extend the signing date, bc he said just simply backing out at this point would be bad. I don't understand why though as I don't have a job. I'm also a bit hesitant to go through with the deal even if I do get my job back in time given the uncertainty of the economy and that it was already going to put me in a really tight financial situation. Does anyone have any advice? What are the consequences of just backing out at this point bc no bank would give me a loan right now, and wouldn't in time for the contract signing, which it's like a week away? Is my realtor giving me good information or is he just wanting my commission by telling me we should just extend in hopes that I get my job back?

So I, the buyer, have an accepted offer, signed purchase agreement, and earnest money down on a home as of last week. The thing is, I work in a construction related field and am unsure about the future of my job. My concern is I'd have a job up until I sign for the loan and then I lose it after and can't afford the mortgage. I have 2 questions: worst case, how big of a deal is it to back out at this point given my uncertainty?

Is it possible or inappropriate to bring this up to my agent and ask to reach out to the seller and explain the situation and propose a lower offer that I'd feel more comfortable offering if I went through with the deal and ended up losing my job and had to float the mortgage with savings? I'm completely unsure if this is even an option at this point.

Hi all,
I have a question about insurance on a flip.
I'm buying the house for 40k, putting approx. 35-40k in on the interior, and hope to sell for about 120-140k.  The term on my loan is 1yr.
This is my first flip and so I don't know much about the insurance I need.  I included screen grabs of the 2 different quote options I received.  Thoughts?  My initial thoughts are to choose the option that only covers 120, but maybe increase the premises liability to 1million.  However, I'm not sure.  Any insight would be greatly appreciated.  

Thanks!

@Ryan Flannery

How are wholesales typically financed when buying?

@Greg H.

Here's a little more info.

The dual agency form I filled out came directly from my agent and their office, it wasn't related to HUD. It was a disclosure of dual agency with their letter head. My agent said her needed me to fill out, along with another unrelated form, for their own records.

By low commission I only meant the houses seem to be inexpensive, at least the ones in my area tend to be. The one I bid on was only 40k, so the commission noted was only 1200 for buyer and seller, 2400 total. And so I didn't know if since the numbers were kinda low in my situation, if theres such a thing where an agent would buy the other's listing out at a reduced rate, in exchange for not having to do anything further on ther sale. I can't understand how else there'd need to be a foreclosure for dual agency in my situation.

During a recent HUD purchase, I noticed the listing agent/agency was a different company than my own agent (something I noticed on both Zillow and the flyer in the home), which is of course not unusual whatsoever. However, when I went to sign documents, one of the forms my agent gave me was an acknowledgment/consent to dual agency. This registered with me as odd, bc I saw the listing agent wasn't my agent, nor did they work at the same company. Does anyone know what this is about? I don't care either way since it's HUD, but my agent never even explained the situation, which I thought was strange. I know that HUD commissions can tend to be low. Is it common practice in this type of situation to I guess buy out the listing agent's commission at a fraction of the commission in exchange for guaranteed money and not having to do any of the paperwork? I'm just trying to understand the situation.

I can find accepted bids on HUD properties, however, does anyone know if HUD also publishes all submitted bids on a property, even those that aren't accepted?

I've learned a lot on here, so thought I'd give back with what I can regarding my recent HUD home purchase. Here's the details about me and the purchase.

Midwest

First HUD purchase

First investment property

Investor purchase

Initially listed at 50k

HUD lowered to 45

I offered 38, they countered saying 40 was lowest they'd accept and I resubmitted at 40 and they accepted. With fees to agents, HUD netted about 83%.

Hope this gives some insight into HUD's current accepted percentage from list rates!