The Easiest Way To Sell Your Real Estate
Banks are being more strict than ever with whom they lend money to, so if you are a home seller you really need to consider becoming the bank, and loaning our your own equity to a prospective buyer. How would that help, you ask?
Let us just say, for this example, you have sold a property that you have fifty thousands dollars in equity in. Selling the property and accepting that one lump sum may expose you to certain taxes and lower your profit potential from it. There is always the usual income tax and certain local taxes that may apply, but larger, more burdensome taxes may also apply.
There are many rules that govern taxes like capital gains tax, so consulting with an accountant or other tax professional is really important in order to save your money and profits. It may seem counter intuitive, but loaning the buyer your profits from the sale may be the best way to limit your tax liability and generate some income doing so. Now, I do not recommend loaning the money back unless you have primary lien position, otherwise you can lose every cent you have in the deal in the event of a foreclosure by the primary lien holder.
As a lien holder on any property you will always know the status of the loan, so you can work things out with the homeowner, something banks are not often willing to do. All you have to do is approach the homeowner directly, and you can offer to pay them to give you the deed bank, or maybe offset some of the payments until they get back on their feet. Most people do not want the shame and embarrassment of being foreclosed on, so they will iron things out with you, if for no other reason than to salvage their credit history. Even when you take it back, you can rent it to them or kick them out and rent to someone else, until you find another buyer for it. Selling the property in the same fashion is not a hard task as their are many people with bad credit who want to buy a home.
Being in this position may sound like a headache, and it can be at times, but you will make a residual interest check and you can help people get their feet back under them, which helps them too. The homeowner may even eventually refinance you out of your lien position altogether. - 23221
Let us just say, for this example, you have sold a property that you have fifty thousands dollars in equity in. Selling the property and accepting that one lump sum may expose you to certain taxes and lower your profit potential from it. There is always the usual income tax and certain local taxes that may apply, but larger, more burdensome taxes may also apply.
There are many rules that govern taxes like capital gains tax, so consulting with an accountant or other tax professional is really important in order to save your money and profits. It may seem counter intuitive, but loaning the buyer your profits from the sale may be the best way to limit your tax liability and generate some income doing so. Now, I do not recommend loaning the money back unless you have primary lien position, otherwise you can lose every cent you have in the deal in the event of a foreclosure by the primary lien holder.
As a lien holder on any property you will always know the status of the loan, so you can work things out with the homeowner, something banks are not often willing to do. All you have to do is approach the homeowner directly, and you can offer to pay them to give you the deed bank, or maybe offset some of the payments until they get back on their feet. Most people do not want the shame and embarrassment of being foreclosed on, so they will iron things out with you, if for no other reason than to salvage their credit history. Even when you take it back, you can rent it to them or kick them out and rent to someone else, until you find another buyer for it. Selling the property in the same fashion is not a hard task as their are many people with bad credit who want to buy a home.
Being in this position may sound like a headache, and it can be at times, but you will make a residual interest check and you can help people get their feet back under them, which helps them too. The homeowner may even eventually refinance you out of your lien position altogether. - 23221
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The author enjoys writing articles about short sale specialist in boise idaho & short sales in boise idaho. Click on the above links to learn more about these topics!
posted by X - Men @ 4:29 AM
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