All Forum Posts by: Jim Gordon

The lender has choices in California how they go about the process of forclosure. From what I can remember depending upon the process the redemtion time can vary from none up to 1 year. So the answer is --it depends on the process the lender used. Don't you just love trust deed states?

Here is a short list of real estate terms to get you going.

http://www.find1home.com/glossary.php

There are more that are specific to investment but these are the most commonly used phrases and terms in RE.

Set up a trust and deed the house into it. I think that works in most states but check with a lawyer in yours.

The first thing I would suggest is to go and shop for a loan. With a 605 credit score and it sounds like slow pays on at least one trade line you may not be able to qualify for a conforming loan. With the good money that you make you should pay off your outstanding debts, the company that you are paying slow because of bad service they want you to pay slow. They are making more money on the interest than they made on the original purchase.

Now that you are in the process of getting your finacial ducks in a row before you purchase check the zoning on the property. The two units that the current owner is adding may not be allowed in your area! Does the current owner have permits for the work that is being done or are they trying to fly under the radar?

As for building another structure in front of the current building that is a zoning issue also. In my area any new construction needs a 30 foot setback and 10 feet of clearance.

Good luck and if this one doesn't make it you can always look for a duplex to get started but I would be very leary of owner added rental units.

Only two words come to mind when I read about the seller getting money outside the HUD-1 on a short sale. Mortgage fraud.

There is a wonderful calculator that every investor should use. It to is free and will save properties for you so that you can easily make decisions on difrent properties. You can also go back and make changes to saved properties as more information becomes available. the link to this amazing tool is-----

http://www.biggerpockets.com/recritic.html

Good Luck and have a great day!

I use NTNonline they have been fairly priced and you get quick service. As long as you have online access you can do a credit and eviction report in about 5 minutes on an individual for 12.50.

Why do you say that loan shopping will lower your credit? All inquiries for mortgage over a 45 day period now only count as 1 hit on your credit report with the big 3.

There would be a gift tax issue and there would be a paper trail if the feds saw it. One way to minimize it is for one parent to give the limt to each spouse and the other parent to give the limit to each spouse. Four seperate transactions. By the way do you have any children? If so have them get a gift also. I am not a tax expert but have been told that this avoids gift tax because the requirement is on an individual not on a family unit.

Capital gains might not be the problem if your parents gift the property to you. Gift taxes to feds kick in on anything over 10,000 per year. If your parents are holding the property in a form of joint ownership they could give you 20,000.00 (10,000.00 each) before gift tax hits. Check with a tax adviser preferably a registered agent to come up with a plan to fit your needs. If you own the property reqirements for a equity line loan vary from a purchase loan. Good luck