Hello, first time poster here. I appreciate your help.
So my question is how to phrase the benefits of owner financing to an owner of a property I would like to buy with the tax benefits.
For example you will be paying 'X' percent if you outright sell it but only 'X' percent if you owner finance the property to me. Etc.
I hope this makes sense!
@Chad Lamb - I would tell the owner than owner financing through an installment sale would accomplish two main goals for the owner. First, the interest income would immediately create an income stream that is secured by tangible property. Secondly, through the installment sale the owner would only be required to report the proportion of the gain each year in relation to the payments received less interest. This is extremely helpful if your owner is in the 15% income tax or lower and can get the benefit of the 0% long term cap gain treatment. This may also help keep them in that bracket rather than a one time hit that vaults them into a tax bracket that causes the cap gains to be taxed. If they are in a higher tax bracket, you are helping them defer the tax payments into future years.
Hopefully that helps!
Awesome information! Thank you so much. I will definitely work up a pitch with this information.