BUYER RESOURCES
There are typically two very common ways property owners can successfully exit without paying a large sum of money (up to 40% taxes on the capital gains).
What are the benefits of 'seller carry financing'?
- Provides you, the seller, with the ability to Defer Capital Gains Taxes by spreading out your tax liabilities
- Guarantees the seller interest payments and payout using your property as collateral
- Mortgage Interest Deductions
- Guaranteed Monthly Income for the Term with zero Management responsibilities
- Exit Plan now Guaranteed
- Bank Financing will require a more thorough investigation, taking a deeper dive into your documents and expenditures including income and taxes – if you don’t have that properly prepared the Lender will definitely be more conservative then what I, the buyer, can recalculate
- Typically Less of a hassle for you, the Seller – reduces stress on you, the seller, to reinvest immediately
- Closing Costs for both parties are far more attractive
- Certainty and Faster of Close of Escrow
- Higher Interest rate for seller than bank CD or Money Market, Increase in your Net Return
- Seller Finance can provide an “annuity” vs. Cash at Close
- If we default, you get to take your Park back
- Passive Income for x amount of years – you’re not locked into a 1039 for moving the money and avoiding tax penalties
- A way for you to pay it forward to the next younger round of investors who started off similarly to where you did
- Provides a flexible structure – whatever works for both you and I – also, if you decide want out of the deal later, you can always sell the note for cash
- Gives us the ability to get you closer to your Asking Price
WHAT ARE THE TWO WAYS A SELLER CAN 'CARRY' THE SALE ON THEIR MHP?
1. Seller Financing
2. 1031 Exchange
These are the most common ways when the opportunity presents itself.