When you’re buying and selling real estate all over the country, one issue you may eventually encounter is the fact that some states have very particular laws about who can and can’t be involved in the preparation and facilitation of a real estate transaction.
In most states around the country, real estate transactions are fairly easy to close (whether you’re closing the deal yourself or hiring a title company or escrow agency to handle it for you). However, there are a number of states (mostly on the east cost) that literally REQUIRE the involvement of an attorney to close any real estate transaction (regardless of the purchase price, property type or the parties involved).
For the average real estate investor, this isn’t a “problem” per se (after all… who would know better about closing a deal than an attorney?), but if you’re involved specifically in the niche of land investing, this can present some issues. [click to continue…]
In this blog post, we’re going to cover something called IRS Form 1098.
This form comes into play for anyone who is selling properties via owner financing, and more specifically,
- If owner financing is “in the normal course of the seller’s trade or business”.
- If the seller is receiving $600 or more in interest payments from an individual borrower in each fiscal year.
Keep in mind, you don’t necessarily need to be a bank or a hard money lender for seller financing to be “in the regular course of your trade or business”. Any person or entity that receives $600+ of interest payments (such as real estate developers, house flippers, land flippers, loan servicers or certain collection agents) from an individual borrower will most likely be expected to file form 1098 each year. [click to continue…]
When I started using owner financing to sell my properties – it was a BIG strategic step forward for my business.
By allowing my buyers to make payments to me over the course of several months/years (rather than requiring one lump sum at closing), I was able to sell my properties MUCH faster and for more money than ever before. It also helped create several streams of passive income (and believe me – when money starts coming in while you sleep, it adds a lot of stability to a growing business).
But for all the good it did, it took me a long time to figure out how to collect these monthly payments the right way. From the very first deal, I had a lot of misguided assumptions about how it was supposed to work. [click to continue…]
“Which counties are the best for finding land deals?”
If there’s any question I’ve heard hundreds of times, it’s probably this one.
It’s a great topic for discussion, because choosing the right market can and will have a HUGE impact on your ability to find great acquisition opportunities that are cheap enough and yet still have a big enough margin to resell them for a pile of cash.
When people ask this question, my sense is that they’re looking for a concise, “1 + 1 = 2” kind of answer.
I wish the answer was this straightforward, I really do (it would save me a ton of time explaining it to people), but as with most things – there are SEVERAL variables that can make a county an ideal or less-than-ideal place to start pursuing vacant land properties.
In this blog post, I’m going to explain the 7 most important attributes I pay attention to when evaluating new areas to invest in. With any luck, it might just help steer you in the right direction. [click to continue…]
In this blog post, we’re going to cover a topic that can be fairly confusing and monotonous for the average person.
We’re going to talk about a strange little document called IRS Form 1099-S.
This form is an important (and often overlooked) step in the closing process for every real estate transaction, and if you’re in the practice of closing deals yourself, this is something you probably ought to be doing.
Why is it Necessary?
To put it in the simplest of terms, the purpose of IRS Form 1099-S is to ensure that sellers are reporting their full amount of capital gains on each year’s tax return (and thus, paying the appropriate amount of taxes to the IRS).
For example, if someone buys an investment property for $100,000 and sells it for $150,000 (giving them $50,000 of capital gains income) – they’re supposed to report this as taxable income at the end of each year… but if they don’t, the 1099-S will act as a safeguard by keeping the IRS in the loop and fully aware of what’s going on. [click to continue…]