How Do I REALLY Sell My House Fast in Chesapeake?
Today we’re gonna talk about the absolute best time to sell a house.
So when is the best time to sell a property?
Well, the truth is it depends.
If you bought it the right way, then anytime should be the right time.
However, will there be times in the market that are more advantageous than others? Try this one for a minute: Consumers and investors usually follow separate and opposite tracks.
So when all the consumers are buying up real estate, do you know what investors are typically doing? That’s when they’re selling! When everyone is in this buyer’s market, that’s when you can usually sell for the highest price and that’s when investors wanna trade into different properties.
5 Benefits of Choosing Real Estate Property Online
But the opposite is also true.
When all of the consumers are dumping and saying “The sky is falling and it’s the worst investment that we saw in ’07 and 2008 and 9 and 10!”.
What were investors like me doing? We’re buying up everything like crazy! WarrenBuffett – he had his own hedge fund at the time.
He was buying 30.
40,000 homes per-year into the markets that actually were totally decimated.
So, best time to sell a home is really at the market high before it falls out is when you’re going to really cash in on top dollar.
But if your strategy requires that, then you may have in fact, the WRONG strategy.
Because if the market is ever turning and moving it away that it’s not advantageous for you, you should be able to continue holding that home, cash flowing it, and continuing to make money on it.
Welcome to another edition of Fridays withFred, my name is Fred Sed.
I got a call from a seller of mine that's looking to list andsell their home with us and he asked me.
Fred, do I have to pay Capital Gains or income taxeson whatever my equity is? This is the answer I have for you.
For him, it was a little bitdifferent.
But for you, it depends on what type of property you own.
If youown an investment property, you're always going to have the liability of paying incometax or Capital Gain on whatever the equity might be.
Because it's an investment property.
No matter if you own it for 6 months or 10 years, you're going to pay Capital Gains.
Now, whether or not you're going to pay it, or how much you owe on it, that depends onthe equity, the net equity.
Meaning after commissions that you pay for agents to sellthe property, repairs, appreciation of value, or whatever it might be your CPA or accountantknows and they'll tell you what taxes you actually have to pay on that net equity.
Butyou are subject to and liable for Capital Gains on any investment property in Californiano matter how long you've owned the home.
Number 2, if its the principleresidence, this is the breakdown for that.
If you own the principle residence for lessthan two years and you sell within two years of owning it, for example.
You bought it ayear ago and you're selling it today and you close tomorrow whatever it might be.
You'llalso be subject to Capital Gains and what that amount will be depends on all the factorsI talked about before in regards to what your equity is, what your cost is, acquisition,closing cost, etc.
That's for your accountant and CPA to figure out.
The second aspect ofselling your principle residence and having to pay taxes or not on the equity is the following.
If you own the property for more than 2 years, this is the cool part.
In California, as longas you're a single individual or married it's broken up into those categories.
If you'resingle, you're allowed up to $250,000 of tax free equity.
So if you've only made $150,000in equity of 4 years of owning it, you don't pay a dime in taxes or capital gains.
Butif you break that quarter million dollar mark as a single individual, you will be subjectto capital gains of whatever that amount is above a quarter million.
If you're marriedin California, you're allowed up to $500,000 in tax free equity.
Anything beyond that,you'll be subject to capital gains.
Either way, consult or talk to your CPA or your accountantin regards to "would I owe anything", "do I owe anything" prior to selling it.
That'ssome of the vendors we have access to that we give our sellers if they have any questions.
If you have any questions about your property in general, contact me 7 days a week at (949)272-0125.
For any questions regarding this topic, videos, to look at properties.
View our highly reviewedwebsite at www.
Com and tune in next week for another amazing edition ofFridays with Fred.
Why? Because that's what Fred said.
This is one of the reasons why one of my many rules in real estate is that I buy below the median.
Why do I do that on my short-term buy and holds? Because if the market ever turns AGAINST me, I’m gonna keep on cash flowing that property and those lower-priced homes – they don’t lose value like a million ora half a million dollar home does.
So Warren Buffett has this principle, right?He calls it the margin of risk.
And really when you talk about the best time to sella house, I wanna draw attention to how Warren Buffett has become a billionaire and the, one of the greatest philanthropist of our day and age; all based on a very simple principle you may have heard called Buy Low, Sell High, okay?
Warren is a really great example if you read his book Snowball, of an individual that really live his principles. He must have understood VirginiaInvesting.com!
He says if you wanna reduce your risk, you gotta increase your margin of profitability.
So it’s real simple:If you buy a house as an investor, you buy it with a lot of equity ’cause if you do, whether it’s the wrong or right time to sell, you can sell profitably! Understanding this principle is key for this next part: If you buy the right house, you can sell it anytime for great profit.
I’ve got an example here of the house that I’ve just recently sold.
This is a house that I sold and purchased in ’05 and sold in 2015.
So I’ve held onto this house for 10 years and here’s some background on this house: I actually leveraged a partner’s money and a partner’s credit to buy this house.
So how much money was I into this deal? I wasn’t in it at all.
And I used my staff and my team and we basically lined it up.
Now I have here the HUD.
This is actually the closing documents on selling this house where I received as you can see here a $38,986check.
But here’s the summary on this spread that I wanna point out.
I purchased this house in 2005 and we bought it for $109,000 and a down payment of 10% was $1,069.
My expenses over the life of holding this was 70,000 but my income was a 107.
What’s the difference? Roughly $37,000 that we got to make in cash flow and to down payments, deposits, along the way.
Then when we sold the house, we collected a check for $28,000 that me and my partner got to split afterI paid back my partner the $9,000 that he put in.
So he put in the money, he got paid back.
So basically there’s 28,000 of profits to split, there’s 37,000 that was made along the way, 37 and 28 is roughly $65,000, okay? So this tiny little house – 4 bedroom, 1 and a half bath, did a good job taking care of me.
Now let’s just for a moment take a look at the ROI.
I could’ve sold this house at any time but why did I sell it now? Well, it’s been a cash cow.
The little bit out, how do I know it’s a cash cow? For a moment, take a look at the ROI! We put in $9,000 but look at what we got out? $65,000! That’s a 720%increase.
Now, divide that over holding the home for10 years and that is 72% a year on your money.
Now, my business partner and I made 72% a year based on whose money? His money! He’s.
he and I get to split the ROI 36% each.
But let me ask you, if I put no money in, what is my real net ROI? It’s infinite! Think about it.
I didn’t put anything in, but I got all of that money coming back out to me.
So this is an example of ‘I could’ve sold this house at any time.
It’s been cash flow cowing.
Why did I really sell it?’.
Because the market was right! What do you do when the market’s wrong? Just keep making money and keep cash flowing! When you do real estate the right way, it can always be a great time to buy, hold, or sell.
which is why I love short-term buy and hold strategies ’cause I get to make my money along the way.
I hope you’ve enjoyed today’s video on the best time to sell your house.
Put some comments below! We’d love to respond and give you the help that you need as we work on turning you into a brilliant, bright, and successful real estate investor.
Hi, my name is Jason Castle, I’m a partnerwith Jaburg|Wilk and my practice areas are family law and criminal defense.
Q: Can I sell my house while the divorce ispending? A: This is a yes and no.
If the other partyagrees, then yes, you can.
However if they are not in agreement you cannot.
It’s importantthat everyone reads the papers that are actually filed with the court.
Specifically, I’mtalking about the preliminary injunctions that’s filed with the initial petition fordissolution of marriage.
Often the petitioner, the person filing, won’t actually read thepreliminary injunctions because that’s what’s going to be served on the other spouse.
Butin the preliminary injunctions, it expressly says that the parties cannot sell property,destroy property, transfer property, encumber property – all of that is precluded andso unless you have an agreement or a court order, the answer is no, you cannot sell theproperty.
Q: What happens if I do? A: If a party sells a house or property, itbecomes an issue that will be brought before the court as a contempt violating a courtorder and so there can be sanctions and the other penalties that would be incurred.
RecentlyI had a case where the husband moved out of the residential property and as soon as hewas gone, the wife put everything on Craig’s list and made very sure that the public knewthat it was her husband’s property that she was getting rid of and it was going forcheap and so it does happen and you go back into court and you get an injunction and hopefullythe court can get you in before all the property is gone.