Creative Financing Ideas

[Peter Miller]

I recently met a woman that has 3 duplexs in a very desirable suburb of Madison, WI valued at around $1 million.  She would like to sell them but are reluctant due to the amount of taxes she'd pay.  She plans on passing them onto her daughter after her death so her daughter can sell them and avoid the taxes.

I explained to her the option of owner financing.  By her financing $1 million at 5% interest rate she'd create a additional approximate 1.5 million in interest, reducing her tax rate by 15% in essence taking home almost 1 million dollars more over the next 30 years.  

Her response was that she wouldn't live another 30 years.  She stated she was intrigued and would love to chat and connect again.  She gave me her buisness card and I plan on setting up a meeting next week for coffee to discuss acquiring her properties.

I need some pointers on creative financing. I've bought all my properties off the MLS. I've yet to see her NOI but they are in a very desirable location with a less than 2% vacancy rate.

What has worked for personally?  How did you sell it to them?  How would you structure this deal? How have you structured creative deals that have been successful?  Any suggestions are greatly appreciated!

[Dennis M.]

The ways it can be structured are only limited by your imagination and of coarse the law . She can stagger her capital gains over 15 Or 20 years instead of 30 she can setup a land trust for her daughter as the beneficiary she can take a big down payment from you and do a Lessor amount over a shorter time . You can add in balloons and refinance out at a later set date ..She can master lease the property to you with option to buy .. you can get a money partner to come in and JV the properties ..the list is endless on how you can set this up