Owner Financing Benefits FOR THE OWNER

[Davis Stoner]

I know there are many benefits to owner financing deals for the buyer. Such as almost everything being negotiable, but what are the benefits are for the owner to agree to owner finance? 

A few months ago I closed on a vacant property where we worked out owner financing, but we didn't do an interest rate or anything. I told her I would buy it for 58k cash or 70k owner financed with 10k downpayment. This owner was very easy to work with, and I would like to continue to use this strategy, but I am wondering what the benefit for the owner is? I know they can realize the gain over many years and I think I heard that the interest payments are not taxable? Thanks for reading and looking forward to responses!

[Chris Seveney]

@Davis Stoner

Interest payments are taxable at ordinary income rates

Benefit can be a seller may be able to get more for the property and not get a lump sum payment which could impact their taxes and instead payments over time to potentially keep them from paying capital gains upfront