Potential Sale Of SCarolina Property, Is This Wise? DaveT?
I have had a Sub2 acquired property for sale for a few months and received an offer yesterday. The buyers went through Bankruptcy a year or two ago and don't have money to put down. I am asking 89.9K and they offered 95K with me holding a second for 20%. They are approved for he first at 80%LTV. Basically this would give me 76k minus a 2.5% broker commision and $50/ month payment onthe second with a refinance to pay me off in a maximum of two years. The 76k would cover all of my money in the house and I have requested a quarterly statement showing that the first is up to date.
Is this a bad deal or is there anything else I should be weary of? The numbers work for me....
What will be my tax implications? Will I pay gains based on the 95K this year or just the amount actually received?
Thanks all and specifically DaveT(if you can respond since this is in your state!)
Jeff[ Edited by jllaco on Date 03/06/2004 ]
Jeff,
About all I can say about this deal is that it is in my state (though you don't say where). I am not a Subject To specialist, nor have I ever dealt with buyers coming out of bankruptcy. I am a buy and hold guy, so I don't sell property very often. When I do, I never take back a note because my buyers are always able to find funding for the deal without my participation. Besides, if I am doing a 1031 exchange, a note is not like-kind property.
Perhaps, someone in the Subject To forum or the Credit Repair forum should give you their expert feedback on the wisdom of accepting this offer from these buyers.
.