What to do when Investor Sells Property with Seller Financing and "Gets It Back" Go To http://ping.fm/Zy6nW

What To Do When You Sell and Finance Your Buyer & You "Get It Back"

let me know if you got it now.

Mike,

When you have a minute, I need some help in Investor Books with installment sales. (I’m just getting 08 taxes together --- and I’m discovering I only have a 6 month memory span)

Here’s the deal. I sold a property on contract in April 2008.
$4,000 down,
$79,900 purchase price.
I set it up just like you show in QB.

Installment sale, new loan, etc

Well, as usual, I got the property back a few months ago (in 2009),

and now have it rented (with option)

Can you tell me how to “undo” the sale.

#1 Larry.... well, let's do a "before we get started" thought... because i went through the exact same years ago, and it has happened many times since.

Okay, now #1... let's take a brain dead simple look at the chronological order of events involved.

April 2008, Larry sells 123 main st. for $79,900.. with 4k down - Yeehaw!

- this means 4k towards purchase using Installment Sale method and the balance of 75,900 (plus whatever) is seller financed..

- you enter your sale of asset as described. and ZERO out your Fixed Asset account for the property SOLD. Now you would no longer own it.

April 2009, after defaulting you get the house back.

in the real world, you actually purchased the house back from them for the balanced owed. Although you did not state the balance owed you with late charges, fees and anything else you wished to tack on... You actually Purchased the house for say... $76,000 "subject to" your existing 1st mortgage loan already on the property.

How to Do This.... THINK SIMPLE

You SOLD it in April 2008. ... gone, adios, bye bye...

If you try to "undo" it, this is a major no-no and probably could be considered some kind of crime... because You are trying to erase a Taxable event of the sale of a piece of real estate. You can NOT "undo" it..

Therefore, when they "give" it back to you, You are actually BUYING another house.... it might be easier to think of this situation as if you were an investor and these Sellers called you.... You agree to buy it for the balance owed to the lender (larry) along with buying it "subject to" the existing 1st mortgage already in place....

I really believe this will help you figure it .... Just NEVER think about "UNDOing" something... just properly document it in chronological order and you got it.

.

For example, do I just show it as acquiring a new asset at the original price and set up a new class OR just move the old asset and class back to where it was.

I still have a loan that I owe on the property.

Thanks

Larry Kite

Great question Larry,... i feel your pain again... although a long time ago, you just tore off that scab on that old would...

keep on Cranking Larry.

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How To Buy Without Banks, Credit, or Cash & Sell Them FAST!" (Free Training)

Hi Friend, getting ready for
my daughter's birthday, but I wanted to drop you
a quik note about the free training on Monday night.

"How to Buy Without Banks, Without Credit, Without Cash,
AND How To Sell Them Fast!"

Here's Your Special invitation
It's free and it's a teleseminar and videowebcast

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DATE: Monday, Aug 10
TIME: 9pm edt, (8pm ct, 7pm mt, 6pm pt)
COST: your time and attention

Today's market is absolutely insane. Odds are,
you are stumbling and tripping over deal after deal;
but, most investors are STUCK because they can't
figure out how to buy without going to the bank.

Even worse, in today's turbulent market, many investors
are having a hard time and have ended up with a ding
or two resulting in bruised credit drying up
their resources to cash.

And the Ultimate frustration for the sharp investor,
is watching deals blow by because they have no cash.

NEVER Again, providing you make sure you are on
Mike's Monday this monday night at 9pm edt.

Friend, you are gonna get powerful
REAL WORLD strategies and techniques
you can put into action Right Now, in your town,
in my town, in anytown USA.

i promise you, this is not gonna be a bunch
of pie-in-the-sky fluff..
We're both sick and tired of all of the fluff
and "virtual this" and "virtual that."

We're talking about good old fashioned, write it down
on a legal pad or notebook...
Step 1:--
Step 2: -
Step 3: -

No computer, No internet, just a cell phone and ink
pen and you are in business to buy without banks

On Monday night, you're gonna the simple, straight forward,
investor strategies you can put into action
the first thing Tuesday morning.

You will be able to buy without cash and sell them
probably FASTER than you can buy them.

The training on Monday Nite will not cost you a red cent.

YOU be the judge.

Get on this call Monday night.
Listen and Take Notes.

YOU make the decision
if these "brain dead simple" strategies make sense.

You will see these things have been under your nose
the whole time, but most investors are just too dag-gone
busy to see it.


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DATE: Monday, Aug 10
TIME: 9pm edt, (8pm ct, 7pm mt, 6pm pt)
COST: your time and attention

How To Buy Without Banks, Without Credit, Without Cash
AND Sell Them FAST!


The things you'll learn on Monday night can be used
on single family houses big and small, apartments,
commercial, and any kind of real estate you can imagine!

For advanced investors, You'll get to see how you
can do all of this and profit tax free right now!

Oh, yeah, one more thing... You're also gonna get
a Question and Answer session on Monday night.
You get to submit a question right now and you can
also ask questions on monday night.

I;m not sure what else to tell you to convince you
Monday night is probably the magic pill you';ve
been waiting for ~Contact.Friend~...


See You Monday night.

Mike Butler

P.S. Monday night you'll see How to Buy Without Banks,
without credit, without cash and sell them Fast.
Plus you get a Question and answer session. Forward
this email to anybody you want to help in real estate or
help get started in real estate...

(One more thing, You MUST be registered to access
any replays if the recording is successful.)
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COST: your time and attention

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