Showing posts with label lake norman investment properties. Show all posts

Wednesday, June 25, 2008

Lake Norman Real Estate: Investors/Investment Properties - 1031 Tax Exchange - Exchange of Tax Liability

1031 Tax Exchange

Here are the basics of the 1031 Tax Exchange
- Allows repositioning of assets without penalty of capital gains tax
- Timing is everything, buyers must sell, identify new property, and close within strict guidelines
- Handled by title company with buyer and seller in agreement
- Only "like-kind" investment properties, principal residences do not apply
- Seller must identify replacement property within 45 days
- 180 days given to close on new property
- Title company facilitates the exchange

For more information on the 1031 tax exchange, click here.

Investment Properties 203K FHA Acquisitions and Rehab Loans

- Loan amount is on project improved value with 10% down
- Buyers can have 4 loans on properties at the same time
- Consultant investigates plans
- Buyer MUST use professional contractor
- Buyer can finance payments for 6 months if uninhabitible

Using FHA loan to purchase a HUD property
- Must be insurable - meets FHA minimum property standards with no repairs (MPS)
- Must be insurable with conditions (IC) - conditions must be satisfied
- Must be insurable with repair escrow (IE) - requires no more than 5K in repairs. Funds can be financed up to 110% of cost to repair estimate
- Uninsurable (UI) - Property only eligible for 203K financing

See also:
Lake Norman Investors: Places to search
Why do I need an agent to purchase a home?
First time homebuyer Renovation Loan

Contact your Lake Norman Real Estate Expert for more information on this post.

Jeremy Adair
Real Living - Davidson, NC
Cell: 704.315.8106
Fax: 704.892.9766
Jeremy.Adair@RealLiving.com

Tuesday, June 24, 2008

Lake Norman Real Estate: Investors

Lake Norman Investors - Places to start

You always see all the house flipping shows on the television and sometimes you see people make large profits, and sometimes you see people having to move into their flip or take a loss. House flipping isn't for the faint of heart and isn't for everyone. Many people make the mistake of getting in over their heads. There are many things you need to look at before you get into Real Estate Investing.

- Are you comfortable being a landlord?
- Can you handle late rents from tenants?
- Can you make small repairs or afford to maintain the property?
- Is there a current demand for rentals in your market?
- Do you have the necessary funds?

It is always recommended that Investors visit a loan officer before searching from properties and to have an ASHI Inspector inspect the house prior to purchase when possible.

Places to search for your investment property.

- Bank Owned Property's or REO's
- Sheriff's Sales/Auctions
Things to remember for Sheriff's Sales
- No RE Commissions for Agents by seller
- Properties may NOT be inspected by the buyer
- Bidding typically starts at around 2/3 the appraised value
- Normally 10% down and must be able to close within 30 days
Mecklenburg County Sheriff's Auctions
Iredell County Sheriff's Sales
Lincoln County Sheriff's Sales
Catawba County Sheriff's Sales

- HUD Properties
Offers submitted online through states HUD Property Managment Firm
HUD will pay up to 5% of buyers closing cost if requested on offer
HUD

- VA Properties
Properties

- Probate Properties
Sold to settle the deceased owner's estate

See Also:
Entrepreneur - Top 10 Real Estate Businesses that are due to take off
NC Home Inspections
Charlotte/Lake Norman area Real Estate Maps
Lake Norman/Charlotte Area Homebuilders - New Construction
Why do I need an agent to purchase a home?
Tips for Selling your Home
Lake Norman Real Estate Info
Lake Norman/Charlotte Area Information Links

Contact your Lake Norman Real Estate Expert for more information on this post.

Jeremy Adair
Real Living - Davidson, NC
Cell: 704.315.8106
Fax: 704.892.9766
Jeremy.Adair@RealLiving.com