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October 17, 2007 at 9:47 PM in reply to: Question regarding pay capital gains or buy property #89806October 17, 2007 at 9:47 PM in reply to: Question regarding pay capital gains or buy property #89815
SD Realtor
Participantluchabee I thought they may have been taken away from us by the IRS… poop… oh well. So yeah that would leave a CRT as the only viable alternative…..
Again in this case it is of no matter because the seller already has sold the property…. oh well… good post and thanks for that.
Original poster, guys like Surveyor and 4plexowner may have some good out of state recommendations for you for some of the markets they are looking in.
SD Realtor
ParticipantFencesitter I would recommend you sit down with your realtor or broker to come up with a cohesive strategy of how to deal with this. You mentioned that the home is not yet REO, if that is true is it for sale as a short sale or not? If it is you may want to ask your realtor to call the listing agent so you can get information from the asset manager who the home has been assigned to in loss mitigation to get the skinny on the home. You may want to make an attempt to get an offer in prior to the trustee sale and you may be able to swoop in on it. Of course this would end up as a short sale and that means it will take a few weeks for the lender to consider your offer.
If it is not yet for sale then all of the above is moot.
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What I have seen is, if the home becomes an REO and it gets priced well then it will most likely go pretty fast. You can absolutely try to come in with a contingency of sale for your property, there is no harm in doing so, yet my belief is that again, your success will depend on the pricing/location/desireability of the home.
People can say all they want about the drug home in 4S Ranch but that sucker had several offers and went into escrow immediately. There is another REO in La Costa Valley that has been on the MLS 1 day and already has an offer on it and more will follow…
My point is (the one I keep harping about) is that desireable properties that are priced aggressively are indeed moving… much to the chagrin of posters…(don’t blame the messenger guys)
You do not have to explain yourself for purchasing the home. Sounds like you know what you are doing. Absolutely put in as a condition of purchase in the RPA (purchase agreement) that you will need utilities and water turned on so that you can perform your due diligence. Once the home becomes REO I am pretty sure the bank will turn them on. Even the drug house in 4S had utilities turned on. Yes I was there and visited the home and no I don’t think there were piles of powder or bundles of cash under the floorboards. However I absolutely understand and agree with the reasoning for the sellers to back out of the deal.
Anyways as always, don’t be afraid to write it up with the sales contingency in place but my read is that they will most likely hold out for awhile for a non contingent offer. Especially in this market. Hey you don’t know if you don’t try right? I say go for it.
SD Realtor
ParticipantFencesitter I would recommend you sit down with your realtor or broker to come up with a cohesive strategy of how to deal with this. You mentioned that the home is not yet REO, if that is true is it for sale as a short sale or not? If it is you may want to ask your realtor to call the listing agent so you can get information from the asset manager who the home has been assigned to in loss mitigation to get the skinny on the home. You may want to make an attempt to get an offer in prior to the trustee sale and you may be able to swoop in on it. Of course this would end up as a short sale and that means it will take a few weeks for the lender to consider your offer.
If it is not yet for sale then all of the above is moot.
*********
What I have seen is, if the home becomes an REO and it gets priced well then it will most likely go pretty fast. You can absolutely try to come in with a contingency of sale for your property, there is no harm in doing so, yet my belief is that again, your success will depend on the pricing/location/desireability of the home.
People can say all they want about the drug home in 4S Ranch but that sucker had several offers and went into escrow immediately. There is another REO in La Costa Valley that has been on the MLS 1 day and already has an offer on it and more will follow…
My point is (the one I keep harping about) is that desireable properties that are priced aggressively are indeed moving… much to the chagrin of posters…(don’t blame the messenger guys)
You do not have to explain yourself for purchasing the home. Sounds like you know what you are doing. Absolutely put in as a condition of purchase in the RPA (purchase agreement) that you will need utilities and water turned on so that you can perform your due diligence. Once the home becomes REO I am pretty sure the bank will turn them on. Even the drug house in 4S had utilities turned on. Yes I was there and visited the home and no I don’t think there were piles of powder or bundles of cash under the floorboards. However I absolutely understand and agree with the reasoning for the sellers to back out of the deal.
Anyways as always, don’t be afraid to write it up with the sales contingency in place but my read is that they will most likely hold out for awhile for a non contingent offer. Especially in this market. Hey you don’t know if you don’t try right? I say go for it.
SD Realtor
October 17, 2007 at 5:14 PM in reply to: Question regarding pay capital gains or buy property #89732ParticipantI am NOT a CPA or an Attorney. I have posted about these vehicles a long time ago but do not recall the response. Similarly the IRS may have tightened up on the rules… Ask your CPA or a trust attorney about a private annuity trust. Basically these are vehicles for highly depreciated properties that enable potential sale of the property and a massive tax deferment. The property is transferred to a trust. The sales proceeds go to the trust. The money is in the trust and can be invested to earn mo money. You have to take an annual payout at which you are then taxed. As you can see this is a very nice way to defer taxes, and earn income on the nut.
Note this is HIGHLY speculative on my part. I FULLY EXPECT other posters here to blow this out of the water or that the IRS has clamped down on these vehicles. Also this is something that is highly specialized. Of course now I just reread your post and see that you have already sold your property. So this is now a moot post as you would need to move it to a trust prior to the sale. Also the private annuity trust is highly specialized… oh well… I will not delete this…
If you are gonna 1031 make sure the funds go to the accomodator… etc… dont screw that up…also if your gonna 1031 do it with the knowledge of future depreciation and that you will simply ride out the storm.
Personally I have missed the boat many times on pocketing alot of cash simply to avoid paying the government. Seeing as the tax rate in the years ahead WILL BE MUCH HIGHER (another speculative statement but I believe this to be true) then it is now, it may not be a bad idea to pocket the cash now…
Do you think taxes will be lower in the next administration?
SD Realtor
October 17, 2007 at 5:14 PM in reply to: Question regarding pay capital gains or buy property #89741ParticipantI am NOT a CPA or an Attorney. I have posted about these vehicles a long time ago but do not recall the response. Similarly the IRS may have tightened up on the rules… Ask your CPA or a trust attorney about a private annuity trust. Basically these are vehicles for highly depreciated properties that enable potential sale of the property and a massive tax deferment. The property is transferred to a trust. The sales proceeds go to the trust. The money is in the trust and can be invested to earn mo money. You have to take an annual payout at which you are then taxed. As you can see this is a very nice way to defer taxes, and earn income on the nut.
Note this is HIGHLY speculative on my part. I FULLY EXPECT other posters here to blow this out of the water or that the IRS has clamped down on these vehicles. Also this is something that is highly specialized. Of course now I just reread your post and see that you have already sold your property. So this is now a moot post as you would need to move it to a trust prior to the sale. Also the private annuity trust is highly specialized… oh well… I will not delete this…
If you are gonna 1031 make sure the funds go to the accomodator… etc… dont screw that up…also if your gonna 1031 do it with the knowledge of future depreciation and that you will simply ride out the storm.
Personally I have missed the boat many times on pocketing alot of cash simply to avoid paying the government. Seeing as the tax rate in the years ahead WILL BE MUCH HIGHER (another speculative statement but I believe this to be true) then it is now, it may not be a bad idea to pocket the cash now…
Do you think taxes will be lower in the next administration?
SD Realtor
ParticipantRustico is right… It doesn’t matter if it is Redfin, SDLookup, Realtor.com, Zip… all of the third party agencies that list ANY MLS information get it via IDX. The MLS information BELONGS to each individual MLS association. The MLS associations sell a distilled version of the MLS listings to IDX. IDX is a third party provider of data to all independent on line conveyers of data. These third parties such as Redfin etc then take the IDX information put it in thier own presentation, add other information such as property history, pictures or whatever they want to add to it… and then they present it.
SD Realtor
ParticipantRustico is right… It doesn’t matter if it is Redfin, SDLookup, Realtor.com, Zip… all of the third party agencies that list ANY MLS information get it via IDX. The MLS information BELONGS to each individual MLS association. The MLS associations sell a distilled version of the MLS listings to IDX. IDX is a third party provider of data to all independent on line conveyers of data. These third parties such as Redfin etc then take the IDX information put it in thier own presentation, add other information such as property history, pictures or whatever they want to add to it… and then they present it.
SD Realtor
ParticipantMixx I believe that it could very well happen… Obviously it will happen in the less desireable neighborhoods and spread. IMO the only thing that will provide a floor to the price drops will be when they pencil out as rentals.
SD Realtor
ParticipantMixx I believe that it could very well happen… Obviously it will happen in the less desireable neighborhoods and spread. IMO the only thing that will provide a floor to the price drops will be when they pencil out as rentals.
SD Realtor
ParticipantHi Amy –
SD Realtor here as opposed to sdrealtor. 1687 is NOT pending. It has expired on 10/15/07. So no worries for you.
SD Realtor
ParticipantHi Amy –
SD Realtor here as opposed to sdrealtor. 1687 is NOT pending. It has expired on 10/15/07. So no worries for you.
SD Realtor
ParticipantGood post…
My answer is kind of lame but it depends on the submarket. If the home is in glutted places like Eastlake or downtown condoland… A 5% hit may not get you there but after a few of them yes you will sell… If it is a place that is more desireable then yeah standing out from the crowd, and assuming your home is a true comparable would in my opinion get it sold much faster.
Yes you are right it is clumpy at the recent comp level. Sellers cling to 1 or 2% like it is make or break. I would agree that in most cases, it is a good idea to take a little bad medicine now to get sold and get out of dodge. Unfortunately most sellers have emotional attachments, feelings of entitlement that they should get what thier neighbor got in 2005, depression about the market and other disconnects from reality… as other symptoms that dictate a need for either psychological counseling or just a kick in the butt from thier high school PE coach who shouts get off the matt, take a salt pill, and suck it up and do the right thing!
SD Realtor
ParticipantGood post…
My answer is kind of lame but it depends on the submarket. If the home is in glutted places like Eastlake or downtown condoland… A 5% hit may not get you there but after a few of them yes you will sell… If it is a place that is more desireable then yeah standing out from the crowd, and assuming your home is a true comparable would in my opinion get it sold much faster.
Yes you are right it is clumpy at the recent comp level. Sellers cling to 1 or 2% like it is make or break. I would agree that in most cases, it is a good idea to take a little bad medicine now to get sold and get out of dodge. Unfortunately most sellers have emotional attachments, feelings of entitlement that they should get what thier neighbor got in 2005, depression about the market and other disconnects from reality… as other symptoms that dictate a need for either psychological counseling or just a kick in the butt from thier high school PE coach who shouts get off the matt, take a salt pill, and suck it up and do the right thing!
SD Realtor
ParticipantGood post…
My answer is kind of lame but it depends on the submarket. If the home is in glutted places like Eastlake or downtown condoland… A 5% hit may not get you there but after a few of them yes you will sell… If it is a place that is more desireable then yeah standing out from the crowd, and assuming your home is a true comparable would in my opinion get it sold much faster.
Yes you are right it is clumpy at the recent comp level. Sellers cling to 1 or 2% like it is make or break. I would agree that in most cases, it is a good idea to take a little bad medicine now to get sold and get out of dodge. Unfortunately most sellers have emotional attachments, feelings of entitlement that they should get what thier neighbor got in 2005, depression about the market and other disconnects from reality… as other symptoms that dictate a need for either psychological counseling or just a kick in the butt from thier high school PE coach who shouts get off the matt, take a salt pill, and suck it up and do the right thing!
SD Realtor
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