The tax code is replete with timing deadlines that can be used to negotiate better terms. Section 1031 requires a seller to have identified qualified replacement properties within 45 days, and to have completed the purchase transaction within the earlier of 180 days or by the date the next tax return is due, including extensions. Many a seller who uses up all this interval shopping for bargains is eventually confronted with the prospect of either buying something, or paying taxes.

Continue reading “Tax Reduction Ranks Near The Top In Seller Motivation”

The first step the taxpayer must do is to review their potential transaction. Was the property held for investment or in their trade or business? Was the property held long enough? The property must be held for one year, typically at the beginning. Following properties can be held for a shorter period of time.

Continue reading “1031 Tax-Free Exchanges For Investors”

I have lots of land here and there that nobody but me seems to want (and I’m not so sure about me). A few days ago I was trying to buy a lot zoned for mobile homes. The seller, who was also a broker, wanted $63,000 cash, but at her price, I wasn’t interested.

Continue reading “Using What You Have to Get What You Need to Get What You Want”

 Rarely when I hear people complain about being able to buy a house today that makes sense as a rental do I ever hear them mention using anything other than conventional bank financing. They are quick to point out, that even in the relatively low interest rate environment that we have today, the rising prices of houses has outstripped rents so far that nobody can afford to buy a house and hold it as a long term rental. This ignores the fact that the reason expensive houses aren’t feasible as rentals is because of the high leverage used to buy them. A free and clear house will cash flow.

Continue reading “Trading Your Way to a Fortune”

Long before money was invented, people traded goods to get what they wanted. Later on, as people began domesticating livestock, salt became a form of money; and later yet gold and silver; but trade between buyers and sellers has never completely gone away. This is seen every day when people "trade in" their old cars for new cars.

Continue reading “When Cash Dries Up, Learn to Horse-Trade”