Investor Off loading portfolio but doesn't want to seller finance.

[Eric Andrekopoulos]

Hey BP Fam,

I currently have a local investor looking to exit his rental business within the next 5 years because he's older in age. So he wants to sell all of his properties. A vast majority of them have 100% equity which is a beautiful gate to seller finance which I feel will be the most profitable. He mentioned he just "doesn't want to do it" and would rather just get the cash from selling them. Now he does have children he wants to pass wealth to (cash) and not his business. Other than explaining how his children will continue to receive the payments after his passing what can I do to get him on the positive side of creative finance? I also explained to him the tax benefits of it which was another one of his worries.

[John Clark]

Quote from @Eric Andrekopoulos:

Quote from @Jeff S.:

@Eric Andrekopoulos seller finance is not without risk. If he wants his cash get it to him. So he pays tax, seller finance does not eliminate taxes it just defers them. If he spreads out his sales over 5 years he is spreading out his tax bill.

 Hey Jeff, Are you opposed to creative finance? Running numbers you actually see he makes much more sense with this method. I also am able to offer more to purchase because we have full control of terms. I find most sellers lack confidence in it because they lack knowledge about it and all it takes its deep explanation.

Seller financing is investing in the buyer. A seller needs a buyer he can trust. That is deal (buyer) specific. No sane seller is going to announce specific terms of seller financing without knowing who the buyer is, the buyer’s character and his experience and financial wherewithal.

Then there’s the seller’s “children.” Note the plural. Each of them have their own needs and desires. It also means daddy has to get the kids to agree to the terms of his deal in order to keep peace in the family.

Sorry, Joe, but a side-by-side may give the seller an idea of what he’s leaving on the table, but that may not be enough.