Avoiding capital gains by using creative financing

[Joshua Fields]

I am trying to get owner financing on a $250k real estate asset. The owner has owed the property between 1-2 years. He is going to make a huge profit. If he agrees to owner financing will this allow him to avoid capital gains? I’d like to use this as a selling point to benefit us both, thoughts appreciated.

[Tom S.]

@Joshua Fields  Yes, as mentioned above it would allow him to defer capital gains taxes.  Curious if he's only owned it for 1-2 years, why do you think he's going to make a huge profit...are properties in your area appreciating rapidly?  

You also have to make sure he owns it free and clear already in order for OF to work (for you to actually get title and no worries from the sellers mortgage company calling the loan due).