Seller Financing - CPA advice
I have a potential deal that I'm working on, but the owner said that her CPA said it isn't advantageous to do a seller financing route. Can someone offer some advice from a CPA perspective?
The deal has been on market for a very long time and we're looking to pay them on terms over the next few years, but I want to be able to justify why seller financing is advantageous. Thank you in advance!
There's not really enough information to say one way or another. What do your terms look like?
#3 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
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#3 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
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What was the reason?
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@Dylan Miracle
Typically, there are no negative consequences of seller finance. Usually there’s a benefit because the seller may not be required to pay capital gains taxes at sale, and can defer some of that through the installment sale. Unless the seller was looking to do a 1031 but more information is needed .
Thank you all for replying! I had called on a listing and had just begun to pitch the idea of terms & she said that the owner got spooked by the idea because of advice her CPA apparently said. So that's why I have a lack of information, I just wanted some general information because I don't know how there would be a downside to seller financing and wanted to be able to have some armor and real knowledge to back up my offer.