Eliminating Closing Costs With Seller Subsidy

A final method for lowering closing costs is to negotiate for the seller to pay them. Unfortunately, many home buyers, sellers and first-time real estate agents are also sometimes unaware of this option. Moreover, seller-paid closing costs are often tax-deductible for the buyer that's correct , while reducing the capital gains calculation for the seller. This is often called a seller subsidy or seller closing contribution. Either way, it's additional funds working in the buyer's favor. The...

Calculating Depreciation

First of all, depreciation is mandatory. You must accept and claim depreciation deductions if your property qualifies for depreciation . You cannot elect out of it. Consequently, real estate investors cannot file 1040EZ short forms. You may wonder why someone would forego depreciation deductions there are investors with sufficient deductions elsewhere and don't need any more deductions. Moreover, depreciation tends to be considered passive activity losses so they cannot be easily deducted...

Analyzing Grading Credit History

Most conforming and many non-conforming lenders today do not perform the detailed analysis of the credit report that they did during the 1990s. Mortgage lenders are more frequently relying on the consumer credit scores, although some review of the credit details are still performed. The future trend, as the mortgage industry becomes even more automated, will be an even greater reliance on credit scores. Nevertheless, credit scores are derived from the applicant's recorded credit history. This...