How to offer for this property?

Did the owner live in the property for 2yrs? If so, she can reduce the capital gains tax by residency.

Up to $250,000 of capital gains ($500,000 for a married couple) will be tax-free, except for the “depreciation recapture.” Of course, there are conditions and exception, so check with your tax advisor.

Lower the selling price (run the numbers)and avoid the 15% tax on the gains.

Use seller financing.
The payments that you receive each year will be taxed under a rather complex formula. Only a small portion of each payment will be considered capital gains. As a result, you “spread out” your capital gains tax over several years. Installment sales have to be carefully structured, especially considering the extra risks of buyer’s default (failure to pay you as agreed) or early payoff.

1031 exchange could be used if another property is desired.

I am NOT an attorney and this is not legl advice.

Mike,

Thank you very much for taking your time to answer me. I am trying to buy her 5 units building, and she is the one wants to avoid capital gain tax. I am just trying to figure out how should we structure the sale so she won't hit the gain tax and I am also be able to acquire the property and make a cash flow on it. It's a tough situation as she still owe bank $402K on it.

Thank you again, if you have more insight, please let me know.
Nancy

I am in San Diego too honestly it is hard to get started in RE by buying n holding especially here! Since prop's don't usually cash flow here a lot of people just buy props here to hold on to them even they have negative cash flow.

Having said that you can make it work but it takes a special skill set of making enough offers to get those props under contract that will cash flow, off market props 25:1, mailers etc the things taught to wholesale.

Why dont' you want to wholesale? I have now done 3 wholesale deals here in SD 4 in KC but I just got one under contract using the 25:1 off of the MLS. If you want to partner I would like to but to wholesale deals, I have cash buyers who want cash flow deals(according to them:)you get better deals in KC MO but oh well right. I have about 40 cash flow buyers & 60 fix n flip buyers for san diego. PM me if you are int.

Hi tony,

we are in los angeles california, now,

we do looking for a patner to flipp homes,

now we do have a duplex, in gardena, we can flipp. if you interested, please let us know thank you

Nice, not looking to flip now just yet prob end of yr or early nxt yr maybe just wholesaling right now. I can send you props when i get them for LA area if you pm me your info. Thx.

Hi Tony
I live in San Diego, looking for a partner to buy and flip, I got cash myself but not enough. I also would like to hear about your wholesaling may be you can get me a deal, pls call me 858 207-8671 or email saidmahdavi@att.net, thanks and look forward to earn your business

will do but next time pm me ok bc no personal info allowed on our posts only when you private message ok I'll give you a call tomorrow, do you go to SDCIA? I will be going there tonight.

No I am not, look forward to talking to you tomorrow.

Sorry I did not know about the personal info rule/procedure

Sorry I did not know about the personal info rule/procedure

Sorry I did not know about the personal info rule/procedure