I’ve dealt with one bad tenant that did some dumb things like set an iron on new carpet in a bedroom, stained several spots in the living room, broke the lease and left early, etc… ended up keeping her security deposit so the damages were sort of evened out.

Since basis can decrease faster than debt (due to depreciation), the fraction can increase over time.Any sort of active income, such as running a factory making widgets, is also subject to UBIT.

i need to put together a packet for a local mortgage company and am curious to know what sort of offer to put in on the house assuming 10k of rehab costs and a conservative fmv of 360k after 10k of rehab.using 70% tells me that my target price should be 252k.

I like the system myself and recommend all my students consider it as part of their marketing mix for locating motivated sellers.

If you are using a conventional loan to purchase, the bank will require a title policy.If you are purchasing on a lease/option or land contract, you will want to record a memorandum of lease, lease/purchase, or if it's a land contract, you will want to record some sort of memorandum referencing the land contract that will cloud the title in the future (to your benefit).

A company called Prepaid Legal is contracted with KROLL right now selling a monthly membership through them as well as other sorts of protection for as little as 12 dollars a month!

What you are lookling for si a truly motivated seller - one that is willing to sell their house at 50-60 cents on the dollar.

Its not at all difficult to do exactly that, especially if you start leveraging that money or you invest in any sort of leveraged private placement.

I am in a 3 month program to kick start my business with a very successful local investor and he has provided us with a lot of his materials he used while wholesaling and I know him personally and it worked for him so I am NOT trying to re-invent the wheel but I know my competition in they area and they are respected, honest and have been in this business longer - although they tend to rehab their projects but one of my targets is the motivated homeowner and its theirs too!

I am sure you have all sort of spreadsheets and formulas on your PC.