New buyer... Location & HOA Questions

NEW -> Contingent Buyer Assistance Program
<p>Awgee, I'm taking tax deduction on interest payment and property tax. I do some rough calculations on my turbotax software. $36k of interest+property tax a yr will lower the tax due by 23% (of interest+pp) if you put $100k of 1099 income, then 30k of interest + 6k of property tax.</p>

<p>There are other ways to "allocate" income to reach my desired 30% "goal". </p>

<p>For example- because I have my own business, I can choose to pay myself via W2, 1099, or via distribution. Or not pay myself at all and file a schedule C. At the beginning of every year, I run thru about half a dozen scenerios with my tax advisor based on what I'm expecting to make that year. Taxes are different depending on which way you decide to "pay yourself." With the W2, theres alot of BS things like social security, unemployment, state training tax, etc. But with 1099, it is a 15.3% self employment tax in which the IRS takes another 50% off of. But I also have to keep in mind that, the more complicated things are, the more effort it takes to make sure the due diligence is done to make Audits a breeze. One of the things that is becoming more of a problem these days is that IRS is starting to "reclassify" your income. If you pay yourself $0 and your company pays for your rent, car, company meals, etc, the IRS all of a sudden re-do your tax return for you, free of charge, with the exception of the extra tax you have to pay :).</p>

<p>I've got an excel spreadsheet that lists each buying scenerio according to "pay structure." Allocation is not to hide income, but rather to put income in the places that will save you most on tax. Before I make every move, I analyze the tax consequence, because I'm spending "pretax" money instead of "post tax". If I buy a Porsche, I can't possibly classify that as a company expense. So, add 20% to the top of the price for taxes! Bottom line is, tax implications makes or breaks a deal for me.</p>
 
<p>Quick update... Made an offer this weekend. The selling agent seemed to be emotionally distraught when he saw the offer. Hope he didn't "deny" it himself. Hope it made it to the homeowner.</p>

<p>DOM: 40 days


Asking: $700k


Offered: $670k


2005 Price: $650-660k.</p>
 
I would be amazed. 30k off 700 is nothing. Our offers were for a higher percentage off from asking than that and they always countered. That's just how it is in this market. They must have a poor realtor to "tear it up" or are retarded. Unless, of course, you have contingencies such as selling your own home. If you do, well good luck.
 
Why would anyone be offended at an offer of over 95% of their asking price? I would have offered much less in this market.
 
OK... Making a second offer this week.





This particular home in irvine has an asking price of 8% lower than the purchase price in 2005. The way I like it. Nice, cheap, depreciated. After offer said and done, I should be at 10% below with some cash back from the REA.





Almost feels like buying a 1-yr old german car that has 25% of the value wringed out. I should know because im in the business!





Will let everyone know the results after it comes out!
 
<p>buylow....are you diming yourself out as being a used car salesman ? Very brave of you, my man ! </p>

<p>Good luck with the attempt, even though many of us probably think you are crazy ! </p>

<p>Trooper <<<<< wants to take buylow by the hand, and say softly....."step AWAY from the closing table...."</p>
 
<p>Trooper, i'm on an open-ended lease right now and I characterize myself as a casual buyer that will buy based on need as opposed to want. The only loss I'll have is tax money that would have gone into a mortgage payment. I just have to make some equipment investments towards the end of the year to offset some of the lost benefit.</p>

<p>And yes, I am in the automotive industry but I dont buy/sell cars. I design and manufacture auto parts and some of my clients are used car dealers. The society has an interesting stigma about the used car industry, but in reality pre owned vehicles are more profitable than new. A good friend of mine maintains an inventory of 20-30 Mercedes & BMW's in an warehouse. Lists all inventory online, works from home 30 hrs a week. Net profit is almost $500k a year. Pays no car insurance, no car payments because everything is under the business umbrella. Not bad eh?</p>

<p>Now back on topic. I spend 1-2 hrs driving around Irvine every weekend, and I'm starting to notice more price drops so opportunity is definitely out there. When homes of similar/same floor plans start listing in a cluster, it becomes an even more opportune time because 3 neighbors are competing against each other. Most if not all of the newer neighborhoods have this going on.</p>

<p>I'm on my second offer right now, the one mentioned above. A repo being listed at 10% below comps... and there ARE neighbors with same floor plan selling. My offer is at full asking price, but i'm at risk of being outbid by someone who will offer higher than list. If I get outbid, I'm ready to throw a bone at the neighbors. Predatory buying :)</p>
 
3 Del Mar, Irvine. Bank Repo. Listed for $689,800, -3% rebate, needs about 15k of repairs. neighbohood comps at 750k and up. I offered full price for this one, but unfortunately someone had outbid me. Apparently this was a really good deal.... saw dozens of people gawking over the property. Would have been a very good buy.





I'm coming back to the Oak Creek area, and I will start leaving offers, that if they get denied, I'll leave it open ended, for them to contact me if they change their mind. I know they will, because almost all the neighborhoods I look in, have sellers competing with each other. What better way than to offer low to everyone.





Quail hill area - stepping stone. I saw the condos dropping 20k ever since I came in a few months ago. There is almost half a dozen units with the same exact floor plan for sale. Again, good opportunity to get something at a steal. But I'm not too fond of attached condos so they would have to be a SMOKING deal for me to get... asking is 630-660k for most units, I wouldn't offer more than 570-580k max.
 
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