Owner-Financing and 1031 Exchange - Texas
Hello everyone, thank you in advance for your help!
I am looking into an owner-finance deal with someone that I have a relationship with but was looking for some advice. I am wanting to make a short-term owner finance to allow time for me to buy down the price of the property and generate a sizable amount of equity and refinance after a year into hopefully a better interest rate than I would get in today's economy. The seller is free and clear, and is willing to negotiate an agreement that is a win-win for both of us. My question is what options do I have to legally structure an owner-finance deal to where he could take the installments that I give to him over that year, as well as the balloon payment, and apply them all towards a 1031 that he makes by the end of that year while avoiding taxes?