Real Estate Agent · Manheim, PA · Member since 2018 · 37 posts · 20 votes
What are some good ways to pose the benefits of seller financing to a potential seller? What are the differences in tax obligations when they sell and have capital gains vs holding a note?
Real Estate Agent · MA · Member since 2018 · 167 posts · 57 votes
7y
@Nathan Boyer I'm interested in this as well. Attempting to buy a 3 unit with seller financing. This individual likes the cash flow but doesn't like being the landlord. My pitch is going to be offering that cash flow through seller financing and taking over the management through the purchase.
If they want the cash flow, pitch it as a chance to keep receiving monthly checks, but without having to be a landlord.
The added bonus to them of seller financing is they don't get hit with a large tax bill this year... it'll be spread out based on the amount of money you pay them each year.
@Nathan Boyer There’s a good book on the vendor take back mortgage you’re talking about. Has a chapter specifically talking about this topic. Book is by Russell Westcott. I’d be tempted to just break it down into point form and present that.
-Here’s your tax burden if you take it all now.
- here’s your tax burden if you finance __% over the next ___ years.
- either way you’re done with having the day to day hassles of ownership, that’s on me now.
- one way you still get paid monthly, one way you don’t. You decide which works best for you