All Forum Posts by: Terry Royce

Here in MD it takes about 3-4 months from the date of auction until settlement. You are responsible for all taxes and fees from the date of auction (not settlement ) forward. Deposits of $10-30k are required to bid, and the remainder due at settlement

Lou thanks for chiming in.

Yes, we have funds to start rehab, lenders available, and crew in place to do so (my partner is a licensed contractor, and thats how I met him....he was one of my top buyers)

So my partner and I have 2 deals on the table that we were looking to rehab, however we received an offer from another investor that would allow us to make a $44k profit now

or we could rehab and look to make $90k or more by rehabbing. Trying to get others opinions on what they would do in this situation, or variables they would analyze.

Deal Details:

House 1) Purchase: $50k, rehab $50k ARV; $165-170k

House 2) Purchase: $134k rehab $30-35k ARV; $280+

@Brandon Hall - Thanks!

100% of my income is made through REI investments, so I have no W2 withholding, and I did not make any quarterly payments throughout 2014.

So if I look at my 2013 return, I can just write a check for the amount owed on that return and file it with my 2014 extension?

My 2014 liability is definitely greater than my 2013.

I appreciate your input during the busy time of year!

Hi, all.

We are in between accountants, and working on getting someone new in the mix, otherwise I would touch base with them and get this issue clarified.

My question is, if we file a tax extension, and don't pay all of the taxes owed, what exactly the is the penalty. I am trying to figure out if I should pay what I roughly estimate we owe, or to just wait until our taxes are done, to pay exactly what is owed. I found the below info to be contradictory almost?

Failure to Pay Penalty: If you do not pay your taxes expect to get hit with a "failure to pay" penalty that runs at 0.5% per month with a maximum of 25% of your unpaid tax.- that\'s in addition to any interest you\'ll owe on the balance due.

Interest: If you have a balance due to the IRS after April 15, expect to be charged interest. The interest rate is generally around 8%, which is a lot less than the rate charged by most credit card companies.

From: http://www.investopedia.com/articles/pf/07/taxextension.asp#ixzz3XFUbnCKj

Any info is appreciated!

@Joel Owens - You're alluding to the fact that I implied that I could "assign" the contract. Im well aware you cannot (99% of the time) assign REOS.

My plan is to either A) Sell via LLC membership transfer/ or double close B) rehab and renovate.

The listing agent did ask questions and I provided them with everything needed ....proof of funds ... in my name., $2,000 non refundable EMD, no contingences etc.

I feel like you are hating on wholesaling, what gives ? :)

Joel Owens - thanks for your input on the situation. However, I would have to disagree with you that deals are not wholesaleable/flip able if there are multiple offers. I've done em before. Some deals get squeezed too much, others have some meat left.

Hey BP, I'm trying to figure out what to do.

Over a year ago another rehabber contacted me about a deal that they had under contract and were considering selling, and told me that if I found them a buyer, they would partner and split any assignment fee. I ended up finding a buyer, got contract signed and deposit....and then the transaction fell apart somehow (it may have been a short sale) on the seller's end. I'm not sure what happened because when I followed up with them for the last time before the buyer cancelled their contract the investor who had the contract on it didn't respond.

So a realtor just alerted me about a deal that came on the market, and low and behold it was that same house, and came on as an REO. The agent said there are multiple offers but wanted to let me know since it's one of my areas I focus on, if I wanted to get an offer in ASAP.

I'm wondering how I should handle this with the original investor who had it under contract??

If the seller asks for verification of reciept in escrow then the title company will let them know that it has or has not been received/deposited.

Do you have any kind of inspection window?

What's the actual ARV, and how much in repairs does it need?

Some sellers are ok with little to no deposit. Others want more.

I have put up $1,000, $5,000, and $20,000 deposits within the last 3 months on properties. All were non-refundable/no inspections.

Another idea could possibly be to put up $250-$500 at contract signing and the remaining $750-$500 upon the expiriation of any inspection periods.

If you aren't comfortable just move on, and revisit later....maybe the seller will get more motivated.

@Joe C.  - What kind of notes are you buying?