How do I structure a Seller Finance/Wrap?
Good day!
I have a family member who is interested in selling another family member a portion of their holdings in a wrap scenario with what I perceive to be fair terms on properties the Seller owns outright. The seller gets predictable cash flow with no hassle, the buyer gets a nice addition to their portfolio at terms they could not otherwise access.
1) Does anyone have any advice on how to structure these?
2) What should/must we record?
3) What are the benefits/drawbacks of not recording these transactions until a later date?
4) Is there a way to get a mortgage interest write off for the buyers in this scenario?
5) What are the tax implications (in very general terms) of such deals? Who owns the homes?
Thanks to everyone for your insight and help. I imagine we may be enlisting the help of an RE attorney to make this happen, but I think BP members will have more insight into the situation than the average RE attorney.
Have a great day!