All Forum Posts by: Todd Tracy

Thanks for posting, Bob!  Depending on how this case is decided, this would have huge ramifications for 2nds.  This would give investors a lot more comfort to go ahead and purchase 2nds that are on the 'edge' equity-wise, without worrying about whether a court-appointed appraiser decides to lowball the appraisal.

Hi, Rafael,

There are as many ways to invest in notes as there are ways to invest in properties. You can invest in SFRs, multi-families, apartments, commercial, land only, etc. The same goes for notes - you can invest in performing notes (think bonds), non-performing notes, 1st liens, 2nd liens, tax liens, etc. The APR for each class and type varies depending on several factors including risk, discount, etc.

Dave Van Horn's podcast below is a great place to start!  Be careful - notes can be addictive.  You've been warned.

http://www.biggerpockets.com/renewsblog/2013/07/25...

Hi, Marcus - congratulations on the impending marriage!  It's great that you are thinking about this move now while you still have options.

Regarding timing of your refi, it really depends on what your spouse is bringing to the table in terms of income, credit score, etc.  If she has had trouble with collections, debt collectors, etc., then you should probably do the refi now.  (You have had this talk with her, right?  It's critical to know what you are dealing with now as opposed to after you tie the knot!)

You can always talk to a mortgage broker about your situation - they can pull the credit reports for you and your fiancee and let you know what the story looks like.  

What would the property rent for?  Another option is to take the property subject to the 1st and hold it as a rental.  This may produce decent cash flow if the rate on the 1st is good and the 1st lien holder is willing to play ball.

Mike, what's the pricing look like for regular O&E reports and full property reports?  Doesn't seem to posted anywhere on the Abstrax site.  Thanks!

Got it - to sum up, you have a nice chunk of equity in your primary residence, and you'd like to unlock some of that to purchase other properties.  Right?

If that's the case, then I would speak with a mortgage broker about doing a 2nd, HELOC, etc. By using a second mortgage to unlock that equity, you don't have to sell. No taxes to pay - big win! Rates are good, and they will be very happy to have your business. You will need to qualify, which may be a downside.

If you want to think outside the box a bit, think about buying a multifam (duplex, quad) and moving in. As an owner-occupant, you can quailfy for an FHA loan with a downpayment of 3 percent, as opposed to the 20-25% usually required for an investor. The loan is a little more expensive than a standard loan, but you can't beat the downpayment.

Good luck!

Hi, Steve,

Qualifier - not a CPA/enrolled agent, but pretty in tune with overall taxation.

If I'm reading your question correctly, Person B will get the better deal on capital gains tax to the tune of $2,500.  Person A pays 25%, their nominal tax rate, on the gain of 25K, and Person B pays 15% on the same gain.  15% is the current long-term capital gains rate for person in 25%  nominal tax bracket.

"Worth waiting" depends on the person, doesn't it?  If it's a month or two, just arrange for the contracted close date to come in at a year and a day and pocket the extra 2.5K.

The real savings would be to stick around the house for another year - if you live in the property 2 of the last 5 years, you can avoid paying all taxes on the profit of the sale up to 500K for a married couple, 250K for a single person.

Anyone else care to chime in, correct, etc?