New Wrap Loan with Installment Sale
I have an Investment Property that I previously did a 1031 exchange on with sizeable gains. My income recapture (first to pay back), is approximately $45,000. I have a potential buyer (friend), that will work with me on a Wrap Around Sale. My goal is to spread out these gains and have a balloon down the road in 5 Years, when my capital gains tax will be lower because of lower income. Here is the bad news: I currently have a commercial loan on the property for $137,000 (due in 2 years), 4.3% Interest. My goal is to start taking out some cash, I am 62 and want to start enjoying my gains!!!
My idea is to refinance and take out new loan for $200,000 (no taxes on the cash out). Sale price $280,000. This will give me more flexibility with the structure of the new loan for the Buyer. I will need to find a company that does not have a "pay at sale" clause. I will hold a second for the balance.
Does anyone know a mortgage company that is favorable to investors? What am I missing? Can anyone suggest a financial planner in colorado to assist with a deal like this?