Question
The value appraised value of the property is $365K. We are taking loan for $290K which is about 80%. Out of that $290K $270K will go to payoff existing mortgages. I will use Trust deed to pull out $20K. I’ll keep $10K for putting this deal together and I want to transfer rest to my investors who are going to keep the property (the loan is in their name) and rent it out.
The question is …. Can I transfer that $10K just like that?
How can I save on taxes?
[ Edited by tomazas on Date 12/06/2004 ][ Edited by tomazas on Date 12/06/2004 ]
So, the $10K that you are keeping is a transaction fee? A brokerage fee?
Who owned the property that is being transferred to your investors? If you don't own the property, then why isn't the seller getting the $20K as part of his sale proceeds?