- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
Selling stock to buy foreclosure
Posted on 1/4/24 at 8:14 pm
Posted on 1/4/24 at 8:14 pm
House 3 down from me is up for foreclosure auction at end of the month. I’m thinking of purchasing with $175k limit. It’s close and I could store my wife’s decorating business clutter in it. I may eventually rent it. I’m probably going to talk to neighbor directly about purchasing to avoid auction once I figure out what they likely owe.
I’ve got $100k cash. For the remainder, is it smarter to sell $68k in stocks I have (not in retirement accounts) or to tap into my HELOC? I’m up 82% all time on these stocks and 2.4% the past year so I will be paying some taxes if I sell. These are mostly oil and regional bank stocks.
Just wonder what others think. Am I dumb to sell the stocks to avoid current high interest rates? I’m also making 5% on the cash currently. I could probably pay off the HELOC in 6 months if I stopped some of my current automated savings.
I’ve got $100k cash. For the remainder, is it smarter to sell $68k in stocks I have (not in retirement accounts) or to tap into my HELOC? I’m up 82% all time on these stocks and 2.4% the past year so I will be paying some taxes if I sell. These are mostly oil and regional bank stocks.
Just wonder what others think. Am I dumb to sell the stocks to avoid current high interest rates? I’m also making 5% on the cash currently. I could probably pay off the HELOC in 6 months if I stopped some of my current automated savings.
This post was edited on 1/4/24 at 8:16 pm
7
Posted on 1/4/24 at 8:18 pm to Drizzt
quote:
Just wonder what others think. Am I dumb to sell the stocks to avoid current high interest rates? I’m also making 5% on the cash currently. I could probably pay off the HELOC in 6 months if I stopped some of my current automated savings.
No opinion on the purchase itself, but you’ll likely pay a lot less interest on the HELOC than you’ll pay in taxes on the sale of that stock. From a cash flow standpoint, the HELOC likely has the lowest cost if you’re paying it off in 6 months.
This post was edited on 1/4/24 at 8:22 pm
Posted on 1/4/24 at 8:29 pm to Drizzt
If you have enough invested assets borrowing against a Pledged Asset Line may be a better option than HELOC. I wouldn't sell stock and realize the tax hit until aftwe the winning bid goes through which might be too late unless you have other cash lined up to finalize sale. My county requires 5% deposit for auction (forfeited if you win but don't come through w full payment) and balance is due next day.
If you dont wind up renting or flipping the house it just sounds like an expensive alternative to renting a storage facility and potential maintenance liability. Hope you don't get squatters in a vacant home just used for storage.
If you dont wind up renting or flipping the house it just sounds like an expensive alternative to renting a storage facility and potential maintenance liability. Hope you don't get squatters in a vacant home just used for storage.
Posted on 1/4/24 at 9:32 pm to Drizzt
Compare the interest cost to the tax cust of sale.
If you can really pay it off in 6 months you would be looking at likely less in interest costs compared to tax hit.
If you can really pay it off in 6 months you would be looking at likely less in interest costs compared to tax hit.
Posted on 1/5/24 at 8:45 am to Drizzt
Probably more important than the the tax vs interest considerations, are you overweight these individual stock positions and what is their forward outlook. It may be time to trim those anyway. Also, you're going to eventually pay LTCG on them unless you anticipate holding until death, selling in a very low income year while in zero LTCG rate or donating shares. Unless the sale would trigger NIIT (additional 3.8% tax) or you plan to move to a state with lower tax on LTCG there may not be much advantage to putting of the LTCG bill.
Posted on 1/5/24 at 11:22 am to Drizzt
I've bought dozens of houses at foreclosure. The sales took place at 10-1030 and you had to have cash by 2 PM. No time to sell stocks to get proceeds.
I like your idea of talking to the neighbor about buying. This would help salvage their credit and give you time to set up financing or raise cash.
If they are willing to sell, you need to find out how many liens are attached to the property.
I like your idea of talking to the neighbor about buying. This would help salvage their credit and give you time to set up financing or raise cash.
If they are willing to sell, you need to find out how many liens are attached to the property.
Posted on 1/5/24 at 4:46 pm to Drizzt
What's the house usually go for OP I mean on the private market? Those homes that seem too good to be true rarely ever actually foreclose, something else happens as in a private buyer, they refinance, sell, etc.
Posted on 1/6/24 at 5:40 pm to Drizzt
I’m not trying to get into your business or make a criticism here… but I’m confused on what the plan is: flip it, rent it or locate your wife’s business into it (or some combination of those?). I’m also a little confused about the post renovation valuation estimates. Where is the $300k valuation coming from on a 3/2 with 1600 sq. ft. if a 3/2 home with 1900 sq. ft. sold for $223k in a lower interest rate environment last year?
Like I said, I’m not trying to pick this apart. But one of my sidelines had been providing private money to house flippers and investors. Part of the initial exercise/meeting was what the end goal of the project was and how the projected valuations were arrived at.
No biggie. Just curious. Good luck with it either way you take it.
Like I said, I’m not trying to pick this apart. But one of my sidelines had been providing private money to house flippers and investors. Part of the initial exercise/meeting was what the end goal of the project was and how the projected valuations were arrived at.
No biggie. Just curious. Good luck with it either way you take it.
Page 1 of 1
Popular
Back to top
Follow TigerDroppings for LSU Football News