All Forum Posts by: Account Closed

I have done this before for a good tenant. I always ask though that the deposit be paid in full in order to hold it. If they are serious and they are good tenants this is not a problem.

Frank,

Thanks for sharing your actual experience with seller financing. I don't mind leaving an estate behind, but I also feel that my wife and I should enjoy some of what we worked hard for. Children and grandchildren may not appreciate what it took to build these properties.

There are many decisions to be made before retirement. Part of it is investigating different ways of dealing with the real estate we will have accumulated, part of it will be how to provide something for those we love without creating a dependence.

Seller financing can be a useful tool especially when property is owned outright. I will want to investigate other options as well, while I more fully investigate seller financing as a way to supplement retirement and spread taxable gains over years as opposed to one large taxable event.

1031 exchanges are very useful while you are accumulating income producing properties in retirement I'm sure that I will not want to be on call to take care of property needs. I'm also fairly certain that it would be quite difficult to find a property manager that would be as concerned about efficient management.

Look forward to other peoples thoughts and experiences as well.

Thanks Dory,

It's great to have a resource like this where you can learn from the experiences of others. I like to examine all of the tools in my box. There can be many creative ways to do an option, seller financing or employee other tools. Some are circumstantial being in the right place with the best alternative.

I'll check out these other posts.

Seller financing does pose different risks. A taxable income stream is created, even though gains are deferred. There is risk that for some reason the purchaser will fail to make payments. If a buyer fails to make payments it can be time consuming and costly to resolve the issue.

A good contract and making sure that the buyer is credit worthy seems a must before doing any seller financed deal. Important to minimize the risk of loss.

Can anyone tell me about there experiences with seller financing?

Thanks Rich for your insight. Retirement is years down the road, but I want to develop a plan of attack well before then. I appreciate your sharing your thoughts. I'll check out your previous posts.

Have a nice trip look forward to sharing additional thoughts in the future.

I have done quite well over the years with my buy and hold strategy. I fully intend to continue investing for another 10 to 20 years. I have probably got a 2 million dollar gain built-in to the properties we currently hold and when you add back for recapture of depreciation that amount would grow.

Over the course of the next 10 to 20 years, I'm sure that amount will grow considerably.

Seller financing is one possible exit strategy when I retire. It offers a way to potentially spread gains over several years and would yield some interest income as well.

I do not plan to have much if any single family properties at retirement, these I will convert into multi-family units. I'm building a team to assist me in managing my properties now and possibly in retirement. My children are not really interested in RE, but my grandchildren might be.

I'm also looking into creative ways to use a business to assist in my retirement planning. I would love to here some of your thoughts regarding retirement strategies.

There are many things that can go wrong. Having a plan and educating yourself on your market and the strategy or strategies you intend to use is very important. To begin purchasing property with out a clear plan will eventually lead you into trouble.

You will want to know the market you are investing in as well, if you don't then you will want to find qualified advisers to help you.

Leverage is a good thing. To much leverage usually leads to negative cash flow. Some may try this with the hope of future appreciation making up the difference. I n my opinion this is a poor strategy especially sense there are properties that will cash flow.

You will need to have at least some money to invest with. There are some strategies that require significantly less money, but some money is necessary. If you are without money, you will need something else that you can offer to a partnership.

When you start out you will want to learn the legal environment you are working in. Find good agreements and contracts and in y opinion you should have a lawyer review your contracts to insure that they are enforceable and cover the risks associated with the deal you are involving yourself in.

Joaquim

I have also heard from several realtors that BofA will not accept an short sale offer less than 15%.

I don't know your specific situation, but if you actively participate in managing the property the loss limit is not $3K but 25K. It sounds like you don't qualify as a real estate professional.

Without knowing more specifics, it would be inappropriate to offer advice in this matter.

There are several things that could effect your ability to claim any losses. How you invest in real estate plays a big part in what can or can not be deducted. Your level of involvement in managing your real estate - is a full time business, are you actively involved?

Josiah, you might be granting temporary rights that typically belong to owners of real estate, but the key here is whether a sale has been consummated.

In lease option, the buyer has not really purchased the property just agreed to consider purchasing the property.