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Buying or Selling a Home/capital gains
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Question
A friend wants to sell his moms house to us. He doesn't want to hassle with getting it ready and has agreed to give it to us at a great price. Since his mom has passed away, is it possible for him to hold onto the mortgage until after we sell the house and for him to pay us the difference in agreed upon price by him and what we will get for it? If it is a 25,000.00 profit for us and he just gives us the amount, will either one of us have to pay capital gains tax?
Capital gains tax? This is NOT a question for a Real Estate Professional, but should be submitted to an Attorney who specializes in Tax Law, a Certified Financial Consultant and/or a CPA!
He doesn't want to hassle with "getting it ready?" If he's willing to sell it to you "As is," and at a GREAT PRICE, why don't you get an FHA 203K Rehab Loan to purchase it and fix it up yourself with funds from that special loan. (Pays off the Seller and provides Funds for the Buyer to "rehab" the Home AFTER they acquire ownership. Seller doesn't have to do ANYTHING to "get it ready!" You get to repair & improve the Home the way YOU want it--and you acquire the equity in the Home!
Go to the HUD or FHA Websites (www.hud.gov OR www.fha.gov) and check out the FHA 203K Rehabilitation Loan. Read about the "K-Loan", find a List of FHA-Approved Consultants in your area & talk to a few of them, find out what Lenders they do "K-Loan" Consulting for (Not all Lenders do 203ks) and go from there. Good Luck,Geri!
--JIM
PS: Some 80 to 90% of "For Sale By Owner" deals FAIL, with the potential Buyers and/or Sellers losing m money and angry with each other. I urge you to get a licensed Real Estate Agent involved to help you put together a Purchase & Sale Agreement/Contract, work with the Home Inspector, Appraiser, Title Officers, Loan Originators/Processors and the Escrow & Closing Agent! Because he/she didn't help you find the Home, he/she will likely work for a "lesser" fee--and if your REALLY getting a "good deal" on the price,you can build the Realtor's fee into your price.
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| Rating(1-10) | Knowledgeability = 10 | Clarity of Response = 10 | Politeness = 10 |
| Comment | Thanks so much for the info...I will check into all the info you gave me. You gave me more to think about and I think it will go a long way towards us getting this house sold with a minimum of hassle. You were great! Geri | ||
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Jim Root
Expertise
How to select the right Real Estate Salesperson & Loan Officer--ones who will serve your best interests! House-hunting tips & suggestions on selection of the home best for your family needs. Introduction to the Home Buying Process & all the "Players" involved.What is of utmost important to the Homebuyer? Real Estate Contracts & Negotiations, Appraisal needs, Title Co. involvement, Home Inspection issues& the Closing/Escrow systems, etc. Whatever your question, the answer will follow, whether from personal knowledge or research! Gale, shown here with me, has been a Real Estate Office Administrator, licensed Realtor & has served as my Research Assistant over the years!
Experience
Over 30 years as a "Real Estate Professional." including Real Estate Marketing & Sales, Appraisal work, Mortgage Banking & as a Realty Officer with U.S Dept. of HUD's FHA Homeownership Division in Alaska, Washington & Idaho! Some experience in Montana, California, Utah & Nevada markets!Knowledge of National Markets by continuous Research!
Organizations
Former member of Nat'l Ass'n of Realtors (NAR) & Mortgage Bankers Ass'n of America (MBAA). Currently with National Association of Review Appraisers & Mortgage Underwriters (NARA/MU).
Publications
Published in various local, state, regional & national Real Estate-related magazines & newsletters!Co-author of various Govt. publications on Homeownership, Appraisals & Mortgages while with HUD/FHA.
Education/Credentials
Associate Degree in Real Estate Studies plus:
Numerous Real Estate-related Courses conducted by the U. S. Government & Private Industry over the past 30 years.
Bachelors Degree in Mass Communications,
Masters Degree in Education/Teaching
Awards and Honors
Professional Designations: Certified Residential Originator (CRO) from MBAA, Registered Mortgage Underwiter (RMU) & Certified Review Appraiser (CRA) from NARA/MU. Outstanding Peformance Awards for 10 of the 12 years with HUD/FHA & numerous Sales/Listing Awards while a licensed Real Estate Agent.
Past/Present Clients
No longer selling/listing Real Estate, nor Appraising properties, nor working in the Mortgage business, this "Real Estate Pro" serves as Director of a Company that provides Professional Development Seminars & Workshops to the "Real Estate Industry" and provides free (as needed) & fee-paid (on a sliding scale) consulting & inspection services to members of the general public.Your questions will be answered without "salesmanship" & with your best interests in mind!
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