OfflineI am a little confused on this deal and it seems like I might have to do a double close. The seller has a free and clear SFH that was willed to them. They want it gone and don't want to pay a lot of inheritance taxes, so are willing to sell it for $16,500. It has an ARV of about $86k with rehab costs of about $8k tops. I think that I have an end buyer for $53K, thus my dilemma. How do I structure this deal, since the assignment fee would be approximately twice what the selling price would be? Also, I am unsure how selling it way below FMV might affect what the government would want for inheritance tax. I would appreciate any help on this. If I do have to do a double close, at least the numbers would allow it, but if there is another way, I would rather do that.
Thanks all,
Vincent
Abundance Is Our Birthright
http://vanoeinvestments.com
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Is your end buyer a Invester or a retail buyer?
If it is an Invester and they know that you are wholesaling, if its a good deal to them they will have no problem signing an assignment of contract.
If you are not disclosing or don't want them to know what you are doing then Double close.
Seems to me the less money they make the less they will have to pay in taxes.
Jay C
Hi Vincent,
I do encourage you to talk to a tax expert but I am pretty sure the tax they would have to pay will only be on the amount they sell the house for not the FMV of the house. I also would do a double close or simultaneous close on this house because of the amount you will be making on this deal, only because if the investor does not have a problem with the large assignment fee the closing company might. So to avoid this just do double or simultaneous close on it. Way to find a great deal.
Thanks,
Shah
I would double close personally so they cannot see i was making that much anything more than 5k and I'll double close. sounds like a home run congrats!