Finally, access to a line of credit on your structured sale
I am excited about this blog, since many of you over the years have been asking us for this service and now we can help…
“Can we get a line of credit based on our tax deferred structure?” This question has been a source of frustration because over the last 6 years the answer (up to this point) was a disappointing….No. These folks had either recently failed an exchange or sold a business, they liked the concept of deferring and growing their money versus losing it to taxes, and then intelligently going a step further by wanting access to the majority of their funds. Now, with specialty lender Brook Hollow Capital, a qualifying taxpayer may have access of up to 97% of their pre-tax sale proceeds at a very attractive interest rate.
Here are a couple of different ways clients have taken advantage of our services:
- Use this leverage to invest in more real estate,
- Wanted a tax deferred “parking lot” while waiting for that perfect piece of real estate,
- Since the sale of a business CANNOT BE EXCHANGED (under IRC 1031), this is an excellent way to free up capital for another business or to start a new one,
- Put the funds back into the market,
- Pay down an expensive loan due to our low interest rate,
- Retire, or other life style goals.
I am confident you will find this a great way to keep and build what you have worked very hard for.
Chris Princis
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