Capital Gain Account
here is the situation, 2006 was a good year for me, alot of short term sales with a good amount of capital gain that I need to pay tax on, I know that i need to pay a certian percent on the capital gain , my accountant who is not a CPA I asked her if there is things I can do to ease the tax I will pay, I hear people use certian expense to write off, like buying a car and write it as a business expense and that way I could benieft instead of just paying the full amount of taxable capital gain, i think its her job to suggest things that is legal for me to write off, butall i got is well there is nothing you can do but to pay, I wonder if I need to change her and get a CPA who is more knowlegable witht e tax laws and what I can do.
thanks
Well, I made that offer for $35k- and they accepted! Reluctantly, but if I can get the money to them before Christmas they will take it.
Sometimes Christmas time is indeed the most wonderful time of year...
Thanks Bargain for reminding me that I need to be embarrassed by my offers!
Chris
What do you experienced guys look for in a bird dogger? I assume most beginners are coming from totally different backgrounds unrelated to real estate. Does that matter? How important is some sort of sales background?
On a related note, what should a beginner look for in a good mentor/company? Are bigger companies better or worse? Is it all about one on one interaction?
Sorry I am a little late on a reply. I am a realtor and I have to say it can be very annoying working with investors (I am one also). The problem is the market you are in. I am in a market where the average days on market is about 45. So when some investor comes in with a half price offer because Carlton Sheets told him "if the first offer isnt embarrasing its not low enough" I just laugh. I dont even have to consult my seller, they know hes crazy. I know low ball offers work some places, but not here. Assinging is also a annoying little investor scam. They tie up a property and go looking for a different buyer because they dont have any intention of buying it themselves. Then they dont find a buyer and on the last day of their contigency they back out. I advise my clients to NOT accept a deal that gives the buyer the right to assign. Bottom line, please dont believe that seller seconds, assigning, and owner financing work everywhere, it doesnt. Unless you plan on finding some ignorant for sale by owner who has no clue what their property is worth and is delighted that you offered 50k for there home that would sell for 100k.
Im a realtor and I agree with the above. The only real advantage is access to the mls. But if you get a realtor who is working hard for you then they can tell you what comes on the market the minute it does. When I have buyers that I know are serious I check whats called the "hotsheet" twice a day to see whats new on the market. I then call my buyers immediately and let them know or send them an email. I also wouldnt become a realtor unless you plan on doing it at least part time helping people buy or sell a home. When you become one everyone who has a hand has got it in your pocket. Again, my advice is find a good realtor. I know it may be hard and it may take you a few times to find one but there are a lot of good realtors out there (and bad ones). Just try and work with only one, dont jerk around three or four different realtors till you find what you want. ALL realtors have access to the same mls. Its just a matter of who is going to work harder for you. good luck
All valid points. I cannot believe no one above spoke about the benefits of commissions. Focus mainly on your own investing and use your r.e. license on the side, why leave that money on the table?
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I think your statement of,
"If I have to buy property significantly below the "market value" of that property to make a profit, I need to examine the transaction or my business plan rather than try to make a loser of the seller. "
says it all. I think you are more of an Agent making his buck from his 1.5% rather than an investor.
Buying below market does not make you unethical, just a good investor.
I appreciate your advocacy for sellers. But there is a place for investors - estates that needs to close, divorce, pre-forclosure, repair problems, houses that have been on the market for 1-2 years....
I see myself as an investor first. I am starting to see how having a liscense could cloud your responsibility.
Give it a fair chance.
I forget where I read this but an old guy was standing at the edge of a town and a your guy walked up to him and asked how the people were in this town. The old guy responded asking how were the people in your last town? Young guy says, they were nothing but cheats, thieves and liars! The old guy said, well, you are going to find the same in this town. Later on a second guy walks up to old guy and asks the same question, which, you guessed it, old guy responds the same way. This time the second guy responded, they were good people who always tried helping each other, old guy responded, well, you will find the same here in this town.
Long story short, sometimes our past experiences can shape, predict and make our future experiences. Go into each new experience with an open mind. One thing I can guarantee you is there are SOME good people at that REIA meeting. It is your job to figure out the good people and learn what you can from them.
GL
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Different banks have different limitations, some lenders do not have a limit, however, you may want to study what good old John Locke teaches on subject2 investing if you asprire to have lots and lots of properties.
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Ray is right, every lender is different. And there are other ways of acquiring property.
People who have 100s of properties most likely do NOT have loans on all of them, nor are the loans they have all in their own name.