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Account ClosedPoster
#1 BiggerPockets Exclusive PRO Area Contributor
#1 BiggerPockets Exclusive PRO Area Contributor
- Professional Auctioneer
- Baltimore, MD
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Purchase Money Annuity
Account ClosedPoster#1 BiggerPockets Exclusive PRO Area Contributor
#1 BiggerPockets Exclusive PRO Area Contributor
- Professional Auctioneer
- Baltimore, MD
Purchase Money Annuity
Ask the seller to take back an annuity for all or part of the purchase price. The annuity lowers their tax burden by spreading the gain over years, and they will earn more money over the long run. Explain to the seller that they can keep the mortgage note for income, discount and sell it for cash, or use it as a down payment to leverage the purchase of other real estate. You could even split the note into several smaller notes for greater flexibility.
Charles Parrish