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Updated almost 5 years ago on . Most recent reply

User Stats

25
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Kenesha Lewis
  • Investor
  • Florida
7
Votes |
25
Posts

Seller doesn't want to 1031- exchange or pay taxes

Kenesha Lewis
  • Investor
  • Florida
Posted

I have a really good deal in a hot area in San Diego.The seller is motivated, the home she inherited and it is currently vacant as she lives in another city and the last tenants moved out. I have built the rapport with her and I can tell she doesn't have the time to worry about it but wants to sell. The issue is this, she doesn't want to do a 1031 exchange and roll it into another property (she isn't in to being an investor) and she doesn't want to get hit with significant taxes with the sell of the home. How can I solve this issue and create a win-win for both of us? 

Thanks in advance for your insight!

Most Popular Reply

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1,830
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Bill F.
  • Investor
  • Boston, MA
3,390
Votes |
1,830
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Bill F.
  • Investor
  • Boston, MA
Replied

@Kenesha Lewis

Ask her if she is willing to do a seller carry on the property. She gets mailbox money and spreads the taxes out over the life of the loan, you don't have to conform to traditional lending requirements. 

Hardest part about this is setting it up so you look like you know what you are doing and it doesn't come off as shady. I'd dive deep into how to execute the mechanics of a seller carry note, find an attorney to draft the documents, a servicer to handle the regulatory requirements if she wants, ect. 

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