House flippers again

[Ed Pawlowski]

We had a recent thread about the CA tax on house flippers. In the mail today I got two offers, but varying degrees of shyster.

Liquid Properties is offering to buy my house at the assessed value at the tax office. They will pay 100% of the value and the closing costs. The value they give me is $60k less than I paid three years ago and about $200k less than market value. What a deal.

Open door gives a range from $20k below to $20k above market value. Once a price is decided, then they will deduct the cost of any repairs, expenses, and closing costs. Depending on the offer they may be a bit less of a shyster.

I can see why they want to tax these people out of business. They are not Bob and Al buying a run down house and fixing it up to make a fair living. These guys are churning the market for the quick buck.

[T]

That and the government "wants a piece of the action". There is no greed like government greed.

[Wade Garrett]

Amen...

[trader_4]

Don't fall into the classic liberal pit. Which is to find something that they think isn't right, assume that it's governments job to fix it, to tax it, to make it right. They ignore that more often than not, they make things worse. No one is forcing anyone to take a low offer. Did you take it? With the CA tax, it would not apply to just low ballers, it would apply to anyone who buys a house and sells it in less than 3 years, without regard to whether it was a far deal, above market price at time of purchase, etc. You'd think the libs would be happy that investors are buying homes, fixing them up, improving neighborhoods. Apparently that's only good now if the government does it with public housing and your tax money. And the typical politicians coming up with these ideas, never had to run a business, make a profit. Many never had a job other than govt.

[Scott Lurndal]

Why don't you start bitching about the proposed law when it becomes law - until then you're tilting at windmills.

[bowman]

Best of all worlds they have heavily leveraged houses up the ass when the RE market collapses.