The Easiest Way To Sell Your Real Estate
In the typical real estate transaction, the bank loans you the money to buy the property, but many real estate owners miss the chance to make money from a source that they frequently do not even see. What would that do, you say?
Take, for instance, a property that you have several thousand dollars in equity, and you have someone who wants to buy it from you. With equity, you will want to make sure that you protect your profits by shielding your gains from taxes as much as you can. It is not only a matter of income taxes or municipal taxes that may affect your bottom line, and there are additional taxes that tax you at a higher rate.
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.
By loaning on your own property, you have a very proactive opportunity in dealing with the home owners and can cut off any foreclosure by dealing directly with the borrower. If the buyer does get behind on payments, you simply go to them personally and express some empathy for them, then offer to take the property back through a deed in lieu of foreclosure. 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. From there you can rent the property back to them or you can send them on their way and look for another buyer to sell it to. Buying a home is on the forefront of many minds, so loaning out your money on it again is not too difficult.
By helping your next buyer on your home, you can get another residual interest check and be in the same position you were in before you had to take the property back in the first place. By doing things this way you can make some easy money from the homeowner, but you will probably be refinanced out eventually. - 23305
Take, for instance, a property that you have several thousand dollars in equity, and you have someone who wants to buy it from you. With equity, you will want to make sure that you protect your profits by shielding your gains from taxes as much as you can. It is not only a matter of income taxes or municipal taxes that may affect your bottom line, and there are additional taxes that tax you at a higher rate.
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.
By loaning on your own property, you have a very proactive opportunity in dealing with the home owners and can cut off any foreclosure by dealing directly with the borrower. If the buyer does get behind on payments, you simply go to them personally and express some empathy for them, then offer to take the property back through a deed in lieu of foreclosure. 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. From there you can rent the property back to them or you can send them on their way and look for another buyer to sell it to. Buying a home is on the forefront of many minds, so loaning out your money on it again is not too difficult.
By helping your next buyer on your home, you can get another residual interest check and be in the same position you were in before you had to take the property back in the first place. By doing things this way you can make some easy money from the homeowner, but you will probably be refinanced out eventually. - 23305
About the Author:
The author enjoys writing articles about boise real estate & homes in boise idaho. Click on the above links to learn more about these topics!
posted by Mr. Forex at
4:43 AM
0 Comments:
Post a Comment
Subscribe to Post Comments [Atom]
<< Home