Creative financing ideas? Owner wants to sell, but doesn’t want to pay taxes.

[Paul Evans Jr]

Hi all,

I’ve been talking with an owner about purchasing his property. He wants to sell it, but he purchased it with a 1031 exchange and doesn’t want to pay all those taxes (do any of us?).  He doesn’t want to do another 1031 exchange. That’s preventing him from selling. Any ideas for creative financing options I could offer to him? Thanks in advance!

[Corby Goade]

No one wants to pay taxes, but it's part of the deal when you profit. 

Regardless- he can amortize those taxes by working with you on an owner carry. Heck- you could come up with a 50 year term and he'd have totally passive income with very low tax liabilities and you'd get a very low payment. That could be a win/win.

The beauty of owner carry is that there are no rules or regulations, whatever works for each of you is possible, just get creative. 

Best of luck!