I am new to Bigger Pockets and rental property investing and have a question.
I am working on buying an investment property (Duplex) from a seller that wants to possibly do a land contract. (Seller Financing) He has owned this property for over fifteen years and is looking to sell it. He still owes a little over 50,000 dollars on it and the property is worth about 325,000 dollars. He is retired and has a pension that pays him a monthly income. I and this property are located in Wisconsin.
He recently met with his financial advisor who told him that a land contract might not be the best thing for him to do. (sounds like he might move up a tax bracket?)
1) Why would his financial advisor tell him this when he stands to make interest on his asset? (Approximately 200,000 over the life of the loan)
2) What are the pros and cons for him selling the property to me on a land contract as it pertains to capital gains?
-Or is it more beneficial for him to sell it through typical financing when it comes to capital gains? (Bank loan)
-He does not need the money out of it right away.
Any help would be greatly appreciated,