[macgeek]

If I am a Investor, and buy a house for say $150,000 - I pay $2,000 taxes for the year, and I flip the place in a year for $170,000 - That is $20,000 minus the tax $18,000 profit. that's 9.75% on my money, The banks on a 1 year CD is giving .75%

Why wouldn't they??

Good for them, BAD for me (A home buyer)

Jonathan

[Swigchow]

Originally Posted by macgeek

If I am a Investor, and buy a house for say $150,000 - I pay $2,000 taxes for the year, and I flip the place in a year for $170,000 - That is $20,000 minus the tax $18,000 profit. that's 9.75% on my money, The banks on a 1 year CD is giving .75%

Why wouldn't they??

Good for them, BAD for me (A home buyer)

Jonathan

Don't forget improvement, holding, and closing costs. Also, don't forget capital gains. I doubt the above scenario works for most investors.

[WestieJeff]

Exactly, assuming a cash purchase with little to no transactional costs on the buy side, on the sell side you're looking at 5-9% transactional costs at a minimum assuming you pay 3% to the buyers agent. You've still got transfer tax, owner title polcy, escrow fees, etc. etc.

Plus as you said, holding costs (power, water, trash, sewer, insurance, hoa, etc.) and even opportunity cost of the money.

Originally Posted by Swigchow

Don't forget improvement, holding, and closing costs. Also, don't forget capital gains. I doubt the above scenario works for most investors.

[teyc]

Originally Posted by WestieJeff

Exactly, assuming a cash purchase with little to no transactional costs on the buy side, on the sell side you're looking at 5-9% transactional costs at a minimum assuming you pay 3% to the buyers agent. You've still got transfer tax, owner title polcy, escrow fees, etc. etc.

Plus as you said, holding costs (power, water, trash, sewer, insurance, hoa, etc.) and even opportunity cost of the money.

I'm sorry for a stupid question, as I'm not from the US. Are buyers required to go through a buyer's agent?

Incidentally, I agree with WestieJeff here. It is easier for people to damage your property than steal from your bank (other than signing liar loans).

[olecapt]

Originally Posted by SportyandMisty

I'd love to do this - just to watch & learn. When/where are they? I'm not going to buy at a trustee sale so I don't need to go do any research on homes ahead of time. I'm just trying to learn.

thanks

FRront Entrance of Nevada Legal News, 930 S. 4th ..

This site appears to give a view of at least part of what is going on

Pending Sales

[macgeek]

+1 olecapt for that VERY GOOD PIECE of Information, and would you be my Friend?

Jonathan

[traderduke]

teyc

You do not need a buyer's agent.........cash does all the talking.........having a good attorney is good though

[Scott456]

Originally Posted by traderduke

teyc

You do not need a buyer's agent.........cash does all the talking.........having a good attorney is good though

Do you think an attorney is cheaper than a RE agent?

[NoMoreRJ]

Originally Posted by Scott456

Do you think an attorney is cheaper than a RE agent?

depends on how competent the attorney is. If the house cost enough, the attorney could be cheaper than the 3 or 6% commission.

[airics]

providing you find a home that is not being sold by a real estate company.