Also be aware of the park's approval process for when you aim to resell/rent the home.3.

I recently bought a home, and I had plan to resell it, until, a friend mentioned something about " dealer status" .

What is worse, you might not be able to resell the house and then your savings are depleted.

Run & build up the biz & occupancy for 2 years, then re-sell for a whole lot more.

IRS may consider that your option deals make you a dealer instead of an investor, if your intent is to resell instead of as an investment. 

They wanted to rehab the units and resell the property, but they were low on funds.

WA state has a 1.78% excise tax when reselling on top of property taxes, i pay 5% realtor fees, and then standard closing costs, etc. 

Best case scenario, he makes 10% interest plus a 10% profit share (which comes to 25% APR based on our deal projection)Worst case scenario, is if we fail to meet the terms on our note, he can foreclose on the property, and for 30k he can easily resell the property to any other rehabber at 70k and more than double his money.

few comments.. there are companies that do the MLS resell think great western.. not a fan of that buyer gets screwed most of the time.its regional.. your in a very robust market.. simply not that many distressed assets.. that's really the bottom line.you go to Detroit or other big mid western old cities and wholesaling of low value assets is how they are sold 90% of the time.. in our market in PDX many of the top court house steps and bigger flipper wholesalers have moved to new construction.. again lack of inventory and too many people chasing too few deals.. and many are contractors.. hard to compete against guys that are just buying a job.

Originally posted by Account Closed:Hello BP,I recently met with a local closing attorney and told them about my plan to buy renovate and resell houses.