Do you own these outright? If the numbers work, I don't see a problem because you'll be making that interest $$ off of them. I would definitely check w/ your CPA though regarding the tax issues, etc.
rental help please
- Thread starter Mjolnir
- Start date
LUX,
yes, they're paid for. trying to avoid the capital gain tax for awhile. after five years maybe invest in something else to not have to pay it... not sure, thanks.
yes, they're paid for. trying to avoid the capital gain tax for awhile. after five years maybe invest in something else to not have to pay it... not sure, thanks.
Ripken,
Really depends on your tax situation? I see no problem with that other than you better know who the buyers are :scared . Ten percent down can be eaten up very quickly if say they live there for 3-4 years, beat the hell out of the place, then take off :cursin: It has happened before (to me) and now I would do nothing but 20-25% down minimum. Course if its a relative/associate that might help, but not for me anymore.
Back to the sellers mortgage, why not take your money out now. Use for a tax deferred exchange, put into a larger property (commercial?) with less time. As you can see, it starts to get complicated, so each investor I have dealt with seems to be different.
Get email from Jack if you need more
Franky
Really depends on your tax situation? I see no problem with that other than you better know who the buyers are :scared . Ten percent down can be eaten up very quickly if say they live there for 3-4 years, beat the hell out of the place, then take off :cursin: It has happened before (to me) and now I would do nothing but 20-25% down minimum. Course if its a relative/associate that might help, but not for me anymore.
Back to the sellers mortgage, why not take your money out now. Use for a tax deferred exchange, put into a larger property (commercial?) with less time. As you can see, it starts to get complicated, so each investor I have dealt with seems to be different.
Get email from Jack if you need more
Franky
LOL,
Of course my long winded reply gets prempted by LUX :mj07: good advice there buddy (Lux) :hail :brows:
After reading your reply back to Lux, seems like a tax deferred exchange might be the thing for you Ripken.
Franky
Of course my long winded reply gets prempted by LUX :mj07: good advice there buddy (Lux) :hail :brows:
After reading your reply back to Lux, seems like a tax deferred exchange might be the thing for you Ripken.
Franky
LOL Franky.
ripken8, A 1031 exchange allows you to reinvest all of your equity (net proceeds) and keep all of your money working for you. It will help you increase your net worth much faster than if you sell and pay taxes. If you need some cash, you can always sell and do a partial 1031 exchange such as selling for $500K and buying for $400K and pay taxes only on what you have not reinvested, but the full tax deferral is usually the best way to go. Have your tax advisor run two scenarious - one paying tax and one doing continual exchanges (swapping until you drop) and look at the out come 20, 30, plus years later. You will be amazed at the difference in your net worth.
ripken8, A 1031 exchange allows you to reinvest all of your equity (net proceeds) and keep all of your money working for you. It will help you increase your net worth much faster than if you sell and pay taxes. If you need some cash, you can always sell and do a partial 1031 exchange such as selling for $500K and buying for $400K and pay taxes only on what you have not reinvested, but the full tax deferral is usually the best way to go. Have your tax advisor run two scenarious - one paying tax and one doing continual exchanges (swapping until you drop) and look at the out come 20, 30, plus years later. You will be amazed at the difference in your net worth.
Frankie,
I know what you mean about the 10% then taking off. what if I put in the contract that they commit to the purchase after the five years. that way they're responsible for the mortgage.
LUX,
thanks for the reply. I know I'll want to talk to you and frankie more if I go this route. the holding of the mortgage is the buyers idea, not mine. just trying to figure out the advantages and disadvantages. thanks again...
I know what you mean about the 10% then taking off. what if I put in the contract that they commit to the purchase after the five years. that way they're responsible for the mortgage.
LUX,
thanks for the reply. I know I'll want to talk to you and frankie more if I go this route. the holding of the mortgage is the buyers idea, not mine. just trying to figure out the advantages and disadvantages. thanks again...
