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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] betting on appreciation Posted by Travis-CA on June 04, 2003 at 11:18 AM In Reply to: Re: Foreclosure auction questions.. posted by John - CA on June 04, 2003 at 9:34 AM : Ward, : Why would an investor invest over 80%of FMV, : spent $2000 or so to evict homeowner, : plus pay all bax taxes like 6 months, : then pay interim mortgages, taxes for 3 months in the rehab/resale process, : then finally sell it at FMV, then pay 3.3% witholding tax(less then 2 years), : and come out only on a single digit profit margin? Maybe 7-10%. : I can understand that this is one way to buy primary resisdences at lower than FMV : but this does not sound like investor savvy? I think most auction buyers are betting that in 6 months when they sell the value will have appreciated 6-10%. Also Corporations are exempt from the 3.3% withholding tax. Travis Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : Ward, : : Why would an investor invest over 80%of FMV, : : spent $2000 or so to evict homeowner, : : plus pay all bax taxes like 6 months, : : then pay interim mortgages, taxes for 3 months in the rehab/resale process, : : then finally sell it at FMV, then pay 3.3% witholding tax(less then 2 years), : : and come out only on a single digit profit margin? Maybe 7-10%. : : I can understand that this is one way to buy primary resisdences at lower than FMV : : but this does not sound like investor savvy? : : I think most auction buyers are betting that in 6 months when they sell the value will have appreciated 6-10%. Also Corporations are exempt from the 3.3% withholding tax. : Travis Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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