Very new, new, newbie

Hello all!

My husband and I have been watching different shows showing people flipping houses and doing very well at it. Just this week we started looking at properties to buy but have many questions and are so thankful to have found this website!

First of all, I started looking online at the foreclosurers around and wondered if you could tell us what kind of tax liability you are looking at when buying one of these.

Also, I was reading some of your posts on doucle-closing. I am assuming that this is if you buy a home and are not looking to fix it up but to immediately resell it. Is that correct? Why would this be illegal?

One more question and I’ll get back to my research - do most of you guys have your real estate license? I would imagine that that would help you out quite a bit and would like to look into doing that if we are going to go forward with this.

Thank you so much in advance for any and all advice that you have for us. We are looking forward to getting on the real estate bandwagon!

Howdy Cathy:

Tax liability you will have if you make money buying and selling. Another tax liability that you may be asking about is the property tax that may be unpaid. Yes it is very possible that if you buy a pre-foreclosure there may be taxes past due and even income tax due the IRS and they have filed a lien against the property. Get a title report before buying and even insurance.

Double closings are for flipping usually when you do not want the parties to find out your fee or profit in the deal or for other reasons. Where did you read it is illegal?

I had my license for 20 years and lost them when I hit bottom and could not afford the $400 to renew them and was not dong any deals. I wish I had them again but too much trouble for now.