Greg Heeter, Other/Just Looking in knoxville & orla...

I woul like to know what one can expect to loose in taxes or fees when selling a home ?

Asked by Greg Heeter, knoxville & orlando Sat Jul 28, 2007

Say someone buys a house for x amount of dollars, owns it for 4-6 months and invests x amount of dollars. Now that person would like to flip the house to make a profit. Where, and how much can that person expect to loose before counting their profits. I've read 3 books on flipping houses and they were all vague on this matter. I'm trying to find out what you can acount for on loss, before you count your gain. What do you loose percentage wise for capital gains tax, for sales tax, state tax, at the end of the year what can you expect during tax time. How many houses can someone do a year before you need a license, and what type of license do you need? I am mainly looking for these figures in the orlando,fl area and the knoxvile area. Whatever advice i can get will be a big help, even advice on a good book to read that's not to vague with these percentages and numbers. THANK YOU

Help the community by answering this question:

+ web reference
Web reference:

Answers

5
Vicki Masell…, Agent, Duluth, GA
Sat Jul 28, 2007
BEST ANSWER
Here's another link for a book that might be of interest to you:

http://www.flipthebook.com/

Just in case the link for my earlier book recommendation did not work, I've re-entered it again below.
0 votes
Keith Sorem, Agent, Glendale, CA
Sat Jul 28, 2007
Greg
I realize that at this point you may be moving on...howeverk, if not, or if there are readers interested...
Having owned rental property for over 18 years I think I can speak from the investors point of view:
First, flipping may look good on cable, however that is NOT what is recommended by experts.
Second, I am assumming your goal is make a profit. If I am incorrect, please post this.

Third, to make money in any endeavor , you need to purchase the raw products at a "lower cost", improve them in some way that adds value, then sell them for a profit.

Example: The Millionaire Real Estate Investor uses this model...
a) Only buy homes that meet your criteria.
b) Know what you criteria is, and don't change it
c) Usually that means purchasing a property at least 2\10-20% BELOW value, so no matter what, you make your money
d). Most of the MREI people opt to HOLD, not FLIP. Purchasing one rental property for year, over fifteen years, you will have a retirement plan that is almost unbeatble.

By the books mentioned, then check with the local laws in Florida

Good luck to you!....BTW...FLIP THIS HOUSE on HGTV is NOT REAL when you run the number by a CPA.
Keith
2 votes
Vicki Masell…, Agent, Duluth, GA
Sat Jul 28, 2007
Greg,

Check out the website link below. Also, I recommend that you consider purchasing a book called "The Millionaire Real Estate Investor." It is available through Amazon at: http://www.amazon.com/Millionaire-Real-Estate-Investor/dp/00…

Wishing you much success in your real estate investing - Ted Shoop
Web Reference:  http://www.getflipping.com/
1 vote
Bridgette Ko…, , Florida
Sat Jul 28, 2007
P.S. to my previous post:
You are also going to have to develop a reationships with a CPA and an insurance agent. You are going to need to incorporate for tax and liability purposes; probably as an LLC. You'll also most likely want to protect yourself with an "umbrella" insurance policy.
1 vote
Bridgette Ko…, , Florida
Sat Jul 28, 2007
Greg,
that's a lot of extremely technical questions. It would take far too much time to address all these issues in this forum. You to find a good REALTOR who specializes in residential investment property. They can help with these issues, as well as many you probably haven't thought of yet. This type of "business" you are considering requires you to develop a good relationship with a great REALTOR... Ask friends and colleagues for referrals or call the most reputable real estate company (with multiple offices) in your area and ask to speak to the "Broker of Record". The "Broker of Record" is responsible for all the agents who work at that company and he/she will know which agent is most likely to have the experience you need. Best of luck and happy hunting!
1 vote
Search Advice
Search
Ask our community a question
Home Selling in Zip Codes

Email me when…

Learn more