Seller Carry and Creative Deal Structuring

[Jorge Abreu]

One strategy that has consistently brought me success is seller carry financing and creative deal structuring. In this section, I want to emphasize the benefits of seller carry financing, share success stories where it enhanced the deal, and highlight the tax advantages of utilizing a 1031 exchange.

Seller carry financing is a powerful tool that allows investors to purchase properties with flexible terms and minimal upfront capital. By negotiating with the seller to carry a portion of the financing, investors can leverage their resources and maximize returns.

When you can structure a deal creatively, it opens a world of opportunities.

Let me share one remarkable success story that exemplifies the power of seller carry financing. We recently had a deal where we initially didn't bring up seller carry, but through building rapport and consistent communication with the seller, an opportunity presented itself. The seller, who happened to be a developer, agreed to leave some funds as equity in the deal, providing us with favorable terms. Additionally, when we faced challenges with private equity financing, we asked the seller to replace them. Surprisingly, they agreed, allowing us to close the deal quickly and on much better terms.

One crucial aspect of seller carry financing is recognizing the tax advantages it offers, especially through a 1031 exchange. Byutilizing a 1031 exchange, investors can defer capital gains tax by reinvesting the proceeds from the sale of one property into another. This strategy not only protects your profits but also provides a significant advantage in building wealth through real estate.

To recap, seller carry financing and creative deal structuring have been instrumental in my real estate investment journey. It offers flexible terms, opens doors to new opportunities, and allows investors to maximize their returns. Furthermore, recognizing the tax advantages of utilizing a 1031 exchange can significantly impact your long-term wealth-building strategy. Remember, negotiating creatively and building rapport with sellers can lead to remarkable deals that others might overlook.

[Jorge Abreu]

@Sam Applegate We've had about 30% accept. We offer some type of seller finance or carry on almost every LOI we send. We are able to raise our offer amount with a seller carry structure and that is what we use to convince them.