I’m currently developing another site in Southern California for investments and looking to sell on Owner Finance. Is there any Tax Consequences to doing this way, if so, what are they? And, does anyone have any suggestions and/or advice on the exit side for the California market.
Also, is a “Contract for Deed” legal in the state of California?
Last question, is anyone familiar with doing land trust and managing a owner financed property in order to control the potential foreclosure and/or eviction process??
you might want to spend some time at www.foreclosureforum.com. (Not my site, just a frequent visitor). The person who runs that site is a very experience foreclosure expert in San Diego. He is the real deal; no BS. Also, I would point you to pend some time looking at the Calif codes section of that sites as well. Calif has several rather strict codes (1695 etc,) dealing with foreclosures and I’ve seen a number of people who seem to think they don’t apply to them and get into trouble.
As for “exit strategy in Calif”, well, how about sell for more money than paid for something? Seriously, right now there are people crawling all over money in their pockets and a lot of marginal deals being done in a every softening marketplace.
Seller carry-back financing falls under Section 453 of the Internal Revenue Code. There are income tax consequences, especially if you are a developer and/or dealer.
Contract for Deeds are legal in California, but you do not see very many of them because of our deeds of trust and ease of foreclosure compared to other states.