Oh got it, thanks for the explanation.I am not an accountant or attorney but from a  law point of view I believe that as long as the equity is bound in the property it is not realized capital gains so it won’t be taxed.You could structure it as a deferred payment due at some point in the future making it taxable at that point.

We need at least two to three consecutive months of downward trends before the Federal Reserve considers cutting rates.

Now, courts will provide a check on federal regulators.

You should know the rules inside out or be working with the professionals that know it.Incorrect moves can result in not only a taxable event to you but to your investors.Based on your most recent response, i do not think you have a good understanding of1) requirements of the QOF(You may need to substantially improve a property)2) How long you need to hold a property before it can be sold to exclude the gain3) Inside basis vs outside basisBest of luck

There is also a Federal Grant currently in place the FDIC Banks and private lenders can use that offer not only down payment grant money but they cover the mortgage up to 75% similar to section 8.Please let me know if you need additional programs or breakdown of my original post to help this young man.

While a title company might provide a note and mortgage, it will not prepare a complete, bulletproof loan package.Our package comprises over 20 loan documents including a note, deed of trust, personal guarantee, lender’s instructions, business purpose loan certification, entity certification, various federal and state compliance disclosures, and more.

RESPA and this part apply to federally related mortgage loans, except as provided in paragraphs (b) and (d) of this section.

If you do a construction loan, I would recommend Jason Chambers at United Federal Credit Union (I can send contact info) and Patrick Blackburn at Movement Bank (I can send you info).

Required repairs for federal lending approval are generally more easy to include.We've seen folks with helocs attached to the property who have accessed the heloc to repair the property right before the sale since the heloc has to be paid off as part of the sale. 

So, selling price of $645,000 minus purchase price $415,000 minus new kitchen $50,000 is taxable about $180,000 at 28% tax is $50,000 tax to IRS.