I want to be the Bank: Got specific tips to share?
Hello friends,
My original thought: I want to help and not gouge people.... like a regular bank does. Nice, eh?
My second thought: Sell as is in May for approximately , with a 25 year note. Minimal down payment to avoid huge capital gains taxes and allow 1650/mo in rental income for the first 5 years with a $200 month increase every 5 years which would allow them to pay it off up to 15 years sooner. And...maybe a 6.5% interest rate to grab more attention for this $309K valued home? Would love to chat by PHONE if anybody is willing to throw in some fantastic ideas! Much appreciated. In the meantime, playing around with the finance calculator for potential options that work well for the buyer and me. Win, Win.
Hey @Mark David,
If you aren't already considering or planning on doing so, I would definitely check with an finance professional about a IUL (indexed universal life policy to really take advantage of all the benefits of "being a bank". hope that helps and best of luck 🤝🍀
1. Read about Dodd-Frank Act.
2. Find out how difficult would it be to do foreclose on the property in case new owners do not pay.
3. You will not be collecting rents but mortgage payments. It has different tax implications.
@Mark David are you looking to do this with multiple properties or just one you have? Are you looking to carry the note on a property you own outright or lend on properties people are buying.
You capital gain makes me think it is yours but assumption isn't the best in this world. Also if you are planning on a buyer holding a property for 10+ years ask yourself how long you have held it. Chances are they are going to sell or refi before then as they will want equity out of it.
Dial in what you are looking to do and read up on the legal aspects as they can be quite different.
Cheers!