The $12k is written off (per 179) & the balance of the vehicle $8k, was subsequently depreciated.

Some loan modifications defer the delinquent balance, some completely forgive the delinquent balance!

However, when I sent the contract over to my lender, he informed me that there were some changes coming from Fannie in 2014 that will make it more difficult to go with a conventional loan with 5% down on an owner occupant duplex.So my question for the BP community is, what do you know about the changes coming in 2014 and what effects will it have on a young investor like me who wants to start with an owner occupied duplex?

Your story is familiar and is just more evidence that wholesaling is, in reality, very, very difficult.

You will have an extremely difficult time trying to get any money back from this person.No legal advice.

If it was a larger balance I could just finance the whole property, but since it's not, I will still need alternative funding

Get every one of your credit card balances at least under 30% of that card's limit.

It can be a great idea for some and not so great for others and without knowing you, personally, it's more difficult to form an opinion.Aside from that, it never hurts to have a little more knowledge of basic business finance :)Anthony

Even if you run the economics only out to 10 years and assuming zero appreciation and 60% expenses, the numbers are pretty eye popping so everybody wanted in.I already had a Texas series LLC for Deal #1 so I simply opened a new series, collected the funds, and closed on the purchase.The loan route is not much more difficult once you find a willing private lender, all you need is a promissory note and a pledge & security agreement.

I am having a difficult time knowing what to do.