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Possible solution to the 5% RB contribution

Home Forums General EHTrust/EHT Topics and Creative Real Estate Financing Possible solution to the 5% RB contribution

This topic contains 5 replies, has 0 voices, and was last updated by Avatar of dbhenderson dbhenderson 10 years, 8 months ago.

Viewing 7 posts - 1 through 7 (of 7 total)
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  • #5520
    Avatar of dbhenderson
    dbhenderson
    Member

    Okay, Obama now gives an $8,000 tax credit to first time home buyers? If I am an RB who is eligible for the tax benefits (because I’m a beneficiary in the trust), won’t I be eligible for the $8,000 bail out tax credit? If I am, wouldn’t that (used in conjuction with the interim lease agreement) go a long ways toward coming up with the 5% contribution to do the NEHTrust?

    I’ll be interested in your thoughts!

    DavidB

    #28784
    Avatar of homesavers
    NULL
    Member

    It is actually a disguised loan. The “credit” needs to be paid back over a 15 year period. So much for free money.
    We cannot benefit because it is for first time home buyers. We don’t “buy” homes remember. So it will not work for us. It is only good until July 2009. So if you have some Short Term EHT’s it will help but not for your Lease Option strategy, David. Good idea though.

    the details straight from the “Geheime Staatspolizei”

    #28785
    Avatar of socalgal
    socalgal
    Participant

    No need to pay the credit back after three years ownership.

    Google for it; I couldn’t post the text here without getting an error message.

    Again, this provision has been amended so that it’s a for-real tax credit.

    #28786
    Avatar of mtnwizard49
    mtnwizard49
    Member

    Homesavers hit the nail on the head.

    #28787

    @homesavers wrote:

    It is actually a disguised loan. The “credit” needs to be paid back over a 15 year period. So much for free money.
    We cannot benefit because it is for first time home buyers. We don’t “buy” homes remember. So it will not work for us. It is only good until July 2009. So if you have some Short Term EHT’s it will help but not for your Lease Option strategy, David. Good idea though.

    the details straight from the “Geheime Staatspolizei”

    I understand this is no longer the case and that it is a true credit now with no payback required. This could also help the RB once they choose to exercise their right to purchase if in fact they were a 1st time home buyer.

    #28788
    Avatar of dbhenderson
    dbhenderson
    Member

    The current definition of 1st time buyer is pretty loose.

    #28789
    Avatar of bill_gatten
    bill_gatten
    Participant

    If a beneficiary of a land trust were to take or be granted any kind of “buyer’s” credit, the entire transaction would be characterized by the courts as a mortgage (security agreement) and legal safety and protection in court (against such characterization) would fly right out the window.

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