Investor · Diamond Bar, CA · Member since 2012 · 79 posts · 24 votes
I am purchasing a home and the seller wants seller financing to defer the capital gains tax. However, I may sell the house a few months later. How do I keep the seller-finances mortgage active even after I resell the house?
You'd have to owner finance to your buyer to keep the sellers mortgage in place (or something similar). Which is what I'm doing right now on a property I have.
@Sam M., I don't believe this is possible, especially if you want to resell the home. The only way I see you doing this if you lock in the contract and than find a buyer who is willing to buy with seller financing through the original owner. You would be able to sell off your position to the new buyer (plus your added value), which you may find to be very difficult; essentially acting as a wholesaler, but with tighter parameters (i.e. a buyer who's willing to do seller financing within the owners boundaries). You could recommend a 1031, and inform the current sellers of other options that are available to them as well.
I don't know what you had in mind with the property, whether to flip or maybe buy and hold, but you may want to see how long the seller is wanting to hold the property. If you can make it work, good, but if not... I wish you the best of luck!