We are finding out the hard way in a Contract for Deed we purchased in Alabama about the Power of the Power of Sale Clause. The Power of Sale clause is one of many clauses written into most mortgages which will allow the lender or owner of the mortgage the power to sell the property in the event of a default by the homeowner, in order to pay off the mortgage debt. It is for all purposes the equivalent of a foreclosure, without having to foreclose judicially in non-judicial States.
I know, I know... I told you and myself that I was not going to do this but I just can't help it. Goals are more important than you might realize. It is simple, when I make goals and use them as a tool I make a lot of money, when I don't, I don't make a lot of money. You will not be as successful as you could be without using this essential tool. If you are happy with mediocrity, please don't waste your time reading this article.
Sometimes you need partners to get deals done in this business. Travis and I talk to people almost daily that want to get involved with real estate but do not have the resources to do it, especially as lending gets tighter. Last year I wrote an article about using partners and how I see many partnerships created for the wrong reasons and of course how those partnerships end in disaster. Well this month I want to stress the importance of partnerships for the right reasons and HOW to do it. Specifically we are going to be talking about credit partners and if this is done incorrectly it could be considered illegal.
Today, more and more foreign buyers are making a beeline for the housing markets in the United States. These buyers are interested in this specific financial product because they may want to invest in a second home or in investment properties.
The mortgage industry in the United States is sophisticated when it is compared with those that are present in other parts of the world.
As and when a business or an investment property is sold, the seller will have to pay taxes on the gains (which are accrued from the transaction) at the time of selling. This provision has caused distress to many foreign nationals; which is why IRC Section 1031 was formulated.