I am a real estate agent, working on behalf of an investor.
One of my investors found a FSBO deal, he called the owner and ran into a bit of a roadblock trying to communicate with him so he asked me to call.
The short version of the story is he wants to do a quick claim deed for the title transfer, then be paid with a certified check that he can convert directly into gold coins, or have the check written to a local coin shop.
He's willing to do a traditional closing with a title company and whatnot, but he wants an additional 25k because that's what he's going to have to "give to the government". He didn't seem concerned about a title search, just doesn't want them involved in the closing.
My initial assumption is that he is just trying to sidestep paying taxes.
It's not really my business what he chooses to do in this process, but I'm not willing to risk my license nor do I desire to risk my investor with a questionable deal.
My investor also is telling me there's a mortgage on the property. It shows it should have been satisfied in 2020, so it's possible they just failed to file paperwork showing it's been satisfied.
The investors issue is that he tried to get the sellers ID/SSN for his records, sending $125k requires proper documentation, and the seller refused to provide the info.
Is there any way to structure this, or sell this idea, in a way that protects my investor and myself, while still making the owner happy? Can he show the coin shop as the payee and just let them (buyer and coin shop) work out their details as it pertains to taxes?
Or should I just run as fast as I can in the other direction?
Additionally he's attempting to get me to bail on the investors and everybody else to just buy it myself. Which I do not intend to do for multiple reasons.
I am interested in becoming an investor some day so I also like to understand this idea better, so in the future I know how to either approach, structure, or avoid these types of deals.
FSBO wants a quick claim deal (legalish question)
byu/generalee72 inRealEstate
Posted by generalee72
2 Comments
is this the owners private house? That he has lived in? If so, he’ll have section 121 gain exemption? Maybe arrange for the seller to go to a CPA to get the lowdown on the actual tax consequences of this transaction. Then if it makes sense to your client to go through with it, he (she) goes through with the purchase, and if not, not.
First of all, it’s a “Quit claim deed,” not Quick Claim.