fix up info,foreclosures,HUD,REO

Fix up-REO

FYI Tips;

Everyone wants to get a good deal including the bank, lender, HUD, VA, liquidation dept.

What really happens with foreclosures in the Middle TN area;

The mortgage holder publishes the legal notice for 4 weeks that the property is being foreclosued on. If the home owner can not reinstate the loan prior to that date the property will be sold at the public auction. Most of the time at the county courthouse.

Some investors do purchase the properties at the courthouse sale. Most of the time if you do this you will not have a chance to look inside the property, have an inspection done and you will have to close within 1-2 days from the date of the sale. No time to get a loan completed. If the prior owner has not moved out before the foreclosure you as the new owner will have to go thru the eviction process.

After the courthouse sale if the bank/lender purchases the property at the sale then they will have an appraisal done to set the sales price. If the appraisal shows the property is worth more than was owed on it by the prior owner the lender can sell it for more.

Remember banks don't want to be in the real estate business but once they are they have the obligation to their stock holders not to lose money. They're in the business of making money.

Most banks (99%) list their foreclosures with a Realtor and they list them on the local MLS site so any Realtor can sell the listing.

ALL HUD & VA properties are listed thru a Realtor and can be sold by any Realtor that works for a company that is approved by HUD or VA.

YES I can sell HUD, VA, Fannie and Freddie MAC and any other foreclosure.

FREE DAILY EMAIL SERVICE with foreclosures listings included just call or email me today and we'll get you signed up. Contact me today.

Too Many Flips Back Investors Into Tax Corner

(January 2006) -- Flipping real estate is a popular strategy these days, but beware � the Internal Revenue Service is watching.

If anyone completes several real estate transaction in a short time, the IRS might consider the property transactions a business rather than an investment strategy.

If that happens, instead of paying lower capital gains taxes, investors face paying ordinary income taxes, including self-employment tax. And they�ll be unable to perform like-kind exchanges.

What�s the rule of thumb?

There's no rule of thumb that says: Buy three houses, you'll get capital gains; buy five, and you're a dealer-trader. The IRS looks at whether the activity is a business.

ask these questions;

How many properties have you bought and sold?

How often have you bought and sold them?

In terms of income, is it your primary business?

The IRS is looking to identify because they put more money in the government�s coffers.

Other things to consider;

Want to know what improvements return the most? Kitchen and bath improvements top the list.

Getting ready to sell? Request my FREE infomation, Quick and easy ways to make your home stand out from the others.

Where are you getting the repair funds? You need to count the interest as an expense when you are researching a purchase.

Make sure you work with a Realtor that will share the current comparables with you. This is a service I provide to all my buyers so they will know they have enough room for profit. Even if you're going to live in the home while doing the repairs you want to make sure you're not over paying for the area.

Yes there are now free web sites that will give you a broad range of prices in the area. But most of these sites can't narrow the info down enough to be as accurate as a Realtor who has worked the area since 1983.

Get a property inspection!!!! before you close but after you are in agreement to purchase.

Have your funding lined up so you know what you can do.

This is the short list. If you want additional info or have questions call or email me.

The planning and research are very very important.