Washington DC Hard Money Lender

Mortgage Forgiveness and the IRS

admin — Tue, 21 Feb 2012 09:04:58 +0000

Ahh, those pesky 1099 forms we have to file with our taxes.

Small business owners are always on the lookout for deductions. I was combing through my files from last year, and came across something I thought you should keep in mind during 2012.

Most of us real estate investors have found ourselves working with short sales, or foreclosures over the last few years. You and your clients should be aware of a BIG advantage written into the IRS code.

“The Mortgage Debt Relief Act of 2007 generally allows taxpayers to exclude income from the discharge of debt on their principal residence.”

Until a few years ago, many investors had never seen a form 1099-C. Lenders are required to report any cancelled debts to the IRS using this form, 1099-C, Cancellation of Debt.

Here is a simplified example -

Homeowner pays 100k for a new home.
Recession hits, and homeowner sells their home for 80k through a short sale.
The following January, the lender sends homeowner 1099-C for 20k.

Before 2007, the homeowner would be required to pay income taxes on $20,000.

Today, if the situation qualifies, (your accountant can help you understand the full guidelines), you can exclude the full amount from your income.

This provision applies to debt forgiven in calendar years 2007 through 2012.

The Mortgage Debt Relief Act expires this year.

If you want to read about more details, you will find full details at the IRS link here.

PDA and smartphone users will find the details at http://www.irs.gov/individuals/article/0,,id=179414,00.html

There is motivation to get these short sales completed this year. I realize it is only February, but it’s not too early to be paying attention to these items.

Short sales and the issue of foreclosure can still be a tricky area for real estate entrepreneurs. We will be spending an entire evening discussing these topics at our Feb. 27th WREIA meeting.

Join us this month at our Washington REIA meeting as we invite attorneys from a local law firm to visit with us and discuss some of the foreclosure defense strategies they are using to assist homeowners in this struggle.

You might be very surprised at some of the updates from the “front lines” of the legal community.

Short sales and the issue of foreclosure is still a tricky area for investors. We will be spending an entire evening discussing these hot topics at our Feb. 27th WREIA meeting.

And as always, let me know if I can help with your real estate investing here in the DC area.See you on Feb. 27th!

John Peterson

301-881-5541
Washington REIA Network, President
Profitable Property, Founder

Find video updates on the Profitable Property Channel at

http://www.youtube.com/ProfitableProperty

***

You will also find the registration link at http://feb2012-wreia-dchm.eventbrite.com

Changes in Short Sales Since July 2011

admin — Thu, 16 Feb 2012 09:00:41 +0000

When we last focused on Short Sales at Washington REIA, we talked about how banks were paying 12-20k in assistance to homeowners – if they agreed to go through a short sale.

What a difference just a few months makes.

There was a recent article in Business Week reporting how some homeowners were receiving as much as $35,000 to agree to a short sale.

You can find the full article here.

PDA and smartphones will find the article at

http://news.businessweek.com/article.asp?documentKey=1376-LYZGAF0D9L3601-1GCBJP10H670AIH731N1VHMOIQ

Short sales have become a fashionable buzzword lately in the investor community, and perhaps in the larger public as well.

This is due in large part to the fact that almost 10% of the recent sales across the country are – short sales. To put that in perspective, in 2008, closer to the beginning of this housing mess, short sales were about 2% of the total sales.

We are working with some homeowners right now, who are selling their home through a short sale on their personal residence. Their last regular mortgage payment was in 2006.

These lenders have started to realize that it can take a few year to take a home through foreclosure, and rack up legal expenses as high as 60k or more, or they can pay the homeowner HALF that amount now, and get the property back in relatively decent condition.

Why are banks willing to pay out that amount as an incentive?

Well, why are the banks agreeing to their 25 Billion dollar mortgage servicing settlement?

In both cases – by working with the homeowners, the lenders are reducing their liability on possible fraudulent or criminal activity.

The lenders realize that if they have to answer to a judge or jury for the things that they have been doing with these mortgages over the last few years, they might not look so good.

Some homeowners are fed up with what they view as injustices by their lenders. Some people are fighting back and starting to win their cases.

You might be very surprised at some of the updates from the “front lines” of the legal community.
Short sales and the issue of foreclosure is still a tricky area for investors. We will be spending an entire evening discussing these hot topics at our Feb. 27th WREIA meeting.

And as always, let me know if I can help with your real estate investing here in the DC area.

See you on Feb. 27th!

John Peterson

301-881-5541
Washington REIA Network, President
Profitable Property, Founder

Find video updates on the Profitable Property Channel at

http://www.youtube.com/ProfitableProperty

***

You will also find the registration link at http://feb2012-wreia-dchm.eventbrite.com

Increase in Short Sale Business in 2012

admin — Thu, 16 Feb 2012 03:28:00 +0000

washingtonreianetwork.com – John Peterson describes short sales and the effects on your business in 2012. With over 800 renovations, John Peterson understands how to navigate the complex world of real estate investing. Submit a funding request or joint venture proposal on your project at DCHardMoneyLender.com

Womans Club Of Bethesda – Jan. 16, 2012 WREIA Meeting

admin — Wed, 11 Jan 2012 18:53:18 +0000

www.washingtonreianetwork.com John Peterson invites Washington DC Real Estate Investors to attend the Jan. 16th meeting of Washington Real Estate Investors Association Network. Find more at jan2012-wreia-yt.eventbrite.com With over 800 renovations, John Peterson understands how to navigate the complex world of real estate investing. Submit a funding request or joint venture proposal on your project at www.DCHardMoneyLender.com

Invitation to Washington REIA – Jan. 16, 2012 Meeting – NEW VENUE

admin — Tue, 10 Jan 2012 13:51:35 +0000

www.washingtonreianetwork.com John Peterson invites you to attend the Jan. 16th meeting of Washington Real Estate Investors Association Network. Find more at jan2012-wreia-yt.eventbrite.com With over 800 renovations, John Peterson understands how to navigate the complex world of real estate investing. Submit a funding request or joint venture proposal on your project at www.DCHardMoneyLender.com

Finding and Tracking Leads at 6AM

admin — Wed, 04 Jan 2012 21:08:38 +0000

washingtonreianetwork.com – John Peterson discusses tracking down leads and helping homeowners. Follow John as he discusses this this search – at 6AM. With over 800 renovations, John Peterson understands how to navigate the complex world of real estate investing. Submit a funding request or joint venture proposal on your project at www.DCHardMoneyLender.com

Light Commercial Investment Property In The DC Area

admin — Wed, 04 Jan 2012 21:00:57 +0000

washingtonreianetwork.com – John Peterson discusses light commercial investment property in the Washington DC Area. With over 800 renovations, John Peterson understands how to navigate the complex world of real estate investing. Submit a funding request or joint venture proposal on your project at www.DCHardMoneyLender.com

“Gut Job” and Hiring Architects on DC Investment Property

admin — Thu, 29 Dec 2011 15:42:04 +0000

washingtonreianetwork.com – In this clip, John gives you a tour of a recent renovation near Catholic University in Washington DC. With over 800 renovations, John Peterson understands how to navigate the complex world of real estate investing. Submit a funding request or joint venture proposal on your project at www.DCHardMoneyLender.com

Infomercials and Bikini Clad Women vs. Racoons and Tony The Termite Guy

admin — Thu, 29 Dec 2011 15:30:26 +0000

washingtonreianetwork.com – John Peterson waits on Tony the Termite guy, and relays some experience from the front lines of real estate investing. With over 800 renovations, John Peterson understands how to navigate the complex world of real estate investing. Submit a funding request or joint venture proposal on your project at www.DCHardMoneyLender.com

Moving Forward in 2012

admin — Thu, 29 Dec 2011 02:48:04 +0000

washingtonreianetwork.com John Peterson describes the challenges some real estate investors faced in 2011, and how to overcome those challenges as we move into 2012.