Friday, 10 January 2020
Question: “I’m going to get into house flipping and do tax-deferred exchanges to roll my gains into the next flip and avoid paying taxes. My tax person said that will work…” Answer: I always defer to tax professionals…except when they’re DEAD WRONG! The IRS says that a property must be “held for investment or used
Friday, 03 January 2020
Question: “I’m thinking of buying my first investment property. How much will I need to put down?” Answer: Almost certainly 20% or more. Anything below 20% down is virtually unheard of.
Friday, 10 May 2019
Question: “Why should I care what a buyer puts down. I still get the same amount at closing, right?” Answer: Great question! Indeed, the buyer’s down payment doesn’t impact the amount of your check at closing. (Unless you act as bank and “carry” a first or second loan against the house, but that’s another story.)
Thursday, 08 January 2015
Question: “Since I am not carrying the loan on my house, should I care how much the buyer puts down?” Answer: Yes! All other things being equal, the higher the down payment, the stronger the borrower’s qualifications and looser the lending requirements. And a side benefit is that if the appraisal comes in low the