Seven Ways to Flip a Property

Flipping” is the buzzword of the year in real estate - flipping books, flipping articles in the newspaper, and even flipping shows on TV! What is flipping, how does it work and how you can profit?
Flipping simply means buying a property and reselling it quickly, as opposed to holding on to a property long term as a rental. Flipping comes in several varieties, most of which are legal and profitable, some of which are not.
Flip Strategy #1: Buy, Fix and Flip
Let’s start with the most common form - the good, old “fix ‘n flip”. This process involves buying a property that needs work, fixing it up, then selling on the “retail” market, that is, to a person who will live in the property. This method is tried and true, and works very well. You can easily make $15 - $50k on one deal, depending on your market and how good you are at finding bargains.
The danger in fix and flips is either paying too much or underestimating repairs. Be very conservative in your fix-up costs and length of time it may take to resell. Also, make sure you include in your analysis the cost of paying a real estate agent to sell the property.
Flip Strategy #2: Buy, Refi & Lease/Option
Rather than sell the fixed up property for all cash, sell for terms. Once you have completed the rehab, refinance the property at its new appraised value. If you did the math correctly, you should have little or no money in the deal. Sell the property on a lease with option to buy. The rent payment from your tenant/buyer should cover your mortgage payment (if not, consider an interest-only or adjustable rate loan that is fixed for 3 years). When your tenant exercises his option to purchase, you reap a larger profit, since you don’t have to pay a broker’s fee. If the tenant exercises his option after 12 months, you benefit from a lower capital gains tax rate.
Flip Strategy #3: Buy & Flip “As Is”
Don’t like to do fix-up work? Consider selling the property “as is” as a light fixer upper. If the local real estate market is hot, you should be able to sell the property in poor condition just a little below market. This is especially the case with houses in “transitioning” neighborhoods. Make sure, of course, that you acquire the property sufficiently cheap enough that you can sell it below market quickly and still profit.
Flip Strategy #4: Wholesale
Strategy #1, the fix and flip, is very popular, which means there are a lot of investors looking for rehabs. You can buy the property cheap and sell it for just a few thousand dollars more to another investor without doing any work. You won’t make nearly as much as the rehabber, but you will realize your profit quickly.
Flip Strategy #5: Pre-Construction
In very hot real estate markets, prices are appreciating as much as 2% per month. If you time things right, you can put a contract on a pre-construction house or condominium, then flip it to someone else when the development is complete. If it takes 12 months for the development to be complete, and the condo price is $500,000, you could make $100,000 or more in one year! Of course, the opposite is also true - you could end up losing money if the local economy tanks and you end up with a worthless condo that you can’t sell for more than you paid. Use this approach very carefully...
Flip Strategy #6: Scouting
The Scout is an information gatherer, so not technically a property flipper. He is the “bird dog” who finds potential deals and sells the information to other investors. Many people get started as a Scout for other investors because it does not take any cash or prior knowledge to look for distressed properties. The Scout finds a property for sale, gathers the necessary information, and then provides this information to investors for a fee. The fee will vary depending on the price of the property and the profit potential. The Scout can expect to make five hundred to one thousand dollars each time he provides information that leads to a purchase by another investor.
Flip Strategy #7: Illegal Flipping
OK, I am not advocating this approach, because it is illegal. Illegal property-flipping schemes work as follows: unscrupulous investors buy cheap, run-down properties in mostly low-income neighborhoods. They do shoddy renovations to the properties and sell them to unsophisticated buyers at inflated prices. In most cases, the investor, appraiser and mortgage broker conspire by submitting fraudulent loan documents and a bogus appraisal. The end result is a buyer that paid too much for a house and cannot afford the loan. Since many of these loans are federally insured, the government authorities have investigated this practice and arrested many of the parties involved. As a result, the public perceives is flipping to be illegal.
The fact is, “flipping” - as I described in the beginning of this article - is NOT illegal. Loan fraud in the process of flipping is what is illegal, so don’t confuse the two. The other six ways to flip are very legal, very ethical and very profitable!
Article Source: http://www.articlesbase.com

A Look at Florida Tax Attorney

Attorneys or lawyers are among the people who take responsibility in maintaining harmony in the community. They are the ones who take the initiative to let things sail on smoothly. They are expert in managing the court cases filed against their clients. Whatever type of criminal or civil case that the client gets involved in, it is the duty of the attorney to defend him or her.
The tax law draws clearly the government levies which are placed on every economic transaction. They are hence known as taxes. In truth, the tax law is among the sub-disciplines and areas to be concentrated on by the students in the law schools. Florida tax attorneys are certainly the people who have taken the thorough analysis of the tax law.
The tax law nonetheless covers a lot of areas. Among them are the sales tax, income tax, property tax, excise tax, inheritance tax, as well as the corporate tax. Since the tax law is very much emphasized in Florida, it is not to be doubted that the Florida tax attorneys are always in demand. It adds more to their popularity that they are able to play the very crucial consultative roles in the legal aspect.
The Florida tax attorneys are usually the products of the best law schools in the United States of America. Their license certificates are derived from the Florida Board of Legal Specialization. As budding Florida tax attorney specialists, what they need are the sufficient training background, written examinations, and enough dose of experience.
So what can a Florida tax attorney do for you? In almost all cases, the clients come to the Florida tax attorneys for the same reason-and that is to be saved from the tax disputes they are facing. Getting involved in problems and troubles with the Internal Revenue Service calls for the service of a Florida tax attorney. The Florida tax attorney is acquainted with several modes on how to lessen the most possible punishment to be rendered by the IRS. A Florida tax attorney is likewise able to quickly solve the problem in an efficient way since he has the adequate knowledge to do so.
Most of the law practitioners in Florida are male. But of course there are also the female attorneys. The Florida attorneys manage court cases with regards to real estate, criminal law, family law, personal injury, bankruptcy, and many others. Florida tax attorneys are mainly members of the Florida Bar Association which is the official organization supported by the Supreme Court in Florida. In the state of Florida, the Florida Bar Association is the official statewide recognized regulatory group for the practicing lawyers.
Most of the business owners in Florida have realized the dire need for a Florida tax attorney because they do not want to be paying overpriced taxes all their life. They see their Florida tax attorneys to be as equally important as their business accountants and financial advisers. When it comes to tax issues, they know that no one can handle their concerns better than those of their hired Florida tax attorneys.
Moreover, finding the perfect Florida tax attorney is a matter of shopping around wisely. One must not just settle for someone without properly looking into his credentials. It is important to consider the experience, knowledge, skill, and references of a Florida tax attorney. Article Source: http://www.articlesbase.com

Prerequisites Needed To Become A Successful Tax Attorney

Looking for a new career and comfortable working with figures? Then you might consider becoming a tax attorney. It is well worth investigating what the training might involve - people faced with an impending battle with the IRS or confusion over the tax laws, highlight the fact that tax attorneys are in demand.
The rules and regulations that surround things like filing your tax returns and making appropriate documentation often need further clarification. Some people just don't fully understand what they are doing and as a result could end up with stiff penalties for their ignorance. A tax attorney can help with these problems and make life easier for many people.
In order to be successful as a tax attorney then you need to learn the tax code and laws, inside out. Then, if a person needs assistance with Internal Revenue Service issues you will be able to help. A good tax attorney can help organize and analyze the information that is needed to appease the IRS - if you can do this then your services will be in demand. The complex forms that need filling in can be overwhelming for people without that specialist knowledge.
There are a number of things that could prove a problem with the IRS. If you can't account for any mistakes you have made then you could be liable for heavy penalties. This could result in your hard earned dollars going to fines and additional penalties. If the IRS takes action against you over your past tax filings, you may need to employ a tax attorney if you want to avoid any prosecution for fraud.
Tax attorneys are called upon to help in a number of different areas. Someone may request help with their Payroll Taxes - or they may be called to speak on behalf of someone facing penalties from the IRS. Tax specialists represent those who have filed late returns for one or more years and can argue for a lenient payment plan for their clients. Tax attorneys choose whether they want to be paid by the hour or whether they will charge on the basis of a given assignment.
What An Attorney Should Be Acquainted With
A tax attorney should be familiar with state and federal codes and how these operate. It is also advisable to develop a working knowledge of various incomes, properties and other personal wealth as these are all liable to taxes. A tax lawyer should be an expert in the ways of state and federal laws. This means all the possible taxes that exist. This may include sales, gift, as well as inheritance taxes. It is also advisable for a tax attorney to be familiar with the laws regarding the estates of the recently deceased.
A regular tax-related attorney should be able to deal with all of this information. A tax fraud attorney on the other hand is employed by those who have made a few mistakes in their tax filings. Some attorneys develop a specialist area and their services therefore are specific to the needs of particular individuals and businesses. The attorney may also specialize in one of two main tax issues: the IRS or another taxing authority. Either way, a tax lawyer is often in demand for protecting parts of people's incomes and solving complex business issues.
Prerequisites Needed
To become a tax attorney you need training which results in the qualification of Juris Doctor or equivalent degree. Once you have the right educational credentials, then you need to be licensed by a State Board of Law Examiners if you want to practice as an attorney or counselor. If you really are interested in becoming a tax specialist then you may consider applying to a good law school. They will have various entry qualifications that you may need to fulfill first. Do some research on the different institutions and their requirements first.
Summary:
If you want to become a tax attorney you need to find out what they do first. A tax attorney helps people to deal with their taxes in the proper manner. An individual or a business may need the help of a tax attorney for a variety of reasons - including mistakes in their returns or late tax returns. You need quite a high educational level to become a tax lawyer. source http://www.articlesbase.com/careers-articles

Rental Property Tax Deduction

As a landlord, you are raking in quite a lot of money, but your wallet air having a hole because of the taxing system. Here is a chance to get the best out the system.
A number of options are available to you, under which you can claim the benefits, Some common deductible expenses include:
1. Interest: owners of rented property can use this as the biggest weapon. They can claim deductions on mortgage payments on acquisition and improvement of the property.
2. Depreciation: The cost of rental property can be recovered through depreciation. This benefit becomes available from year two. A landlord can continue to claim depreciation over a period of 27.5 years.
3. Repairs: repainting, tiling the floor, fixing leaks, plastering and replacing broken windows are considered as repairs in a rented property and are fully deductible in the same year in which the expenses are incurred. These repairs should be ordinary, necessary, and reasonable in amount and not capital improvements.
4. Travel: the landlord can claim benefits under the head when they travel to visit their tenants and also in the form of electrical and plumbing work.
5. Home Office: If landlords use a part of their houses solely for activities for their rental business, then they may deduct their home office expenses from their taxable income.
6. Losses: losses resulting from acts of nature can also be considered for deductions. But these are also dependable on the insurance claims too, as he can get a relief from there.
7. Insurance: Landlords can deduct the premiums they pay for any insurance for their rented property. This includes fire, theft, and flood insurance for rental property, as well as landlord liability insurance.
8. Services: Fees paid to attorneys, accountants, property management companies, real estate investment advisors, and other professionals are deductible provided their services are used for work related to rental activity. Certain expenses cannot be deducted and these include loss of rental income due to vacancy, expenses incurred on modifications such as a room addition, new appliances, fencing, and a new roof and so on.
Hence if you know the rules, you can use them as a sword to stop the unnecessary money outflow. It is a double edge sword and work towards attaining some piece of property and peace of mind. Article Source: http://www.articlesbase.com/finance-articles