More Magno

by | Jul 19, 2010 | Jim TV, Market Conditions | 8 comments

This is the second part of the examination of low comps that go under-reported, leaving future buyers and agents to wonder what happened.  Tread very carefully, with little or no information about the details of lower sales, the future buyers are likely to want further discounts, or bow out altogether – they aren’t going to ignore them, are they?

8 Comments

  1. clearfund
    clearfund on July 19, 2010 at 4:49 pm

    I bet the IRS would like to know the difference too.

    Sell homes to family members cheap, thus the parnership earns less money and pays less in taxes. this project would be considered a “dealer” thus no capital gains tax, but rather ordinary income rates.

    When you sell to family cheap, they hold for 2 years, then resell at market prices (hopefully an improving market), and convert those ordinary income taxes into $500k of tax free income (primary residence exclusion) and capital gains on the balance.

    My experience has been that when people are playing games behind the scenes, they are going to try to cut corners and give you the short end of the stick on your deal too. Try getting customer service from a one off partnership 4 years down the road.

    Perhaps not, but a bright red warning flag IMHO.

  2. Susan
    Susan on July 19, 2010 at 7:49 pm

    Thanks for the video. I have always been wanting to know what happened to this Magnolia homes.

  3. Waiting_for_ever_to_buy
    Waiting_for_ever_to_buy on July 19, 2010 at 9:28 pm

    You are in my new backyard. You should have stopped over for a beer.

  4. clearfund
    clearfund on July 20, 2010 at 7:59 am

    Waiting – We’re in Bressi too. I’ll stop over for a beer with JTR…

  5. Susan
    Susan on July 20, 2010 at 11:18 am

    Looks like a lot of the readers here live in Bressi!

  6. Waiting_for_ever_to_buy
    Waiting_for_ever_to_buy on July 20, 2010 at 3:15 pm

    I just moved to Bressi a few weeks ago from San Elijo Hills. We like it. It is still cheaper for me to lease than buy there.

  7. clearfund
    clearfund on July 20, 2010 at 10:13 pm

    Waiting – we sold 2 years ago, and have been renting in Bressi ever since….just waiting out the market, and swimming at the pool.

  8. Waiting_for_ever_to_buy
    Waiting_for_ever_to_buy on July 21, 2010 at 1:22 pm

    clearfund – Good timing on your sale. I moved to SD in 2005 so it was already too inflated. I was not going near it. I need to check out the pool. I have not seen it yet but everyone brings it up when I tell them I live in B.R.

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