All Forum Posts by: Jill McCann

Ok so I guess another question is I don't even know what professionals to get involved here. 

CPA

real estate attorney? 

title agent? 

The lump sum will be life changing to them, but they do not know how to handle money so I will be in charge of figuring that out too. 

Also, the one owner has lived there rent free for 12 years and will get capital gains exclusion for primary residence. How will the lump be divided between owners considering this? And other owner lives out of state. I just don't know where to start or who to ask/retain for help. 

 Yes. They inherited it 12 years ago. Town and land has rocketed since then. They aren't even sure they got it out of probate...they've never used professionals for anything, accounting or otherwise. Never bought homes (live on family land). 

Thanks for advice. 

Yes I've told them for 2 years to talk to an accountant while they were waiting on this to go through. They haven't. So, now the family wants it done and is ready to move (was waiting on their property to sell). 

I also got clarification on the terms. 
Already determined:

Sell price 

Buyer pays all fees, no appraisal etc.

What they are now asking (opposite from original post):

86% down

Seller Finance remaining 14% over 6 years with interest only payments first 3 years and interest plus $1000 last 3 years. They proposed 4% rate. 

Note:
The buyer is 94...

I think we'd probably prefer they seller finance more of it to help with tax burden? But this is where we are. 

Advice? Other than talk to CPA (which I very well know and have told them for years).

Sorry to be unclear. We only agreed to sales price. The whole seller financing part is the new part. It seems you're saying the other terms are ok but perhaps increase the interest rate? 

Thank you! Agreed! Just wanted confirmation. My thought was interest should be closer to 8-10%. 

The situation is unique in that I don't think the owners could handle a typical real estate transaction for this property. Distant relatives approached them about the property and they all independently came to a sales price. I think they could get more, but they've already agreed, and that is that. 

So now we are to terms. The buyer agreed to a purchase price and all fees/costs. The sellers will not 1031 or anything else. They aren't tax savvy and neither are high income earners (both very low income/retired) and won't really entertain any savings strategies. Think Appalachia hillbillies :) For all parties involved. 

Trying to help as best I can as they are all trying to do this on paper and I'm trying to be patient and help. 

Can you offer a suggestion of what you think would be favorable terms? Anything else to consider? 

I need help understanding how to structure a seller finance deal. We received an offer for family property and now that it's time to close they buyers are requesting we seller finance. The property is owned by brother and sister and there is no mortgage. Can someone help me with terms? 

The property has 4 homes, acreage and farmland. The new buyers want to farm and use most of the homes. We need enough money for one of the owners to purchase another home or negotiate he stay living there. But the other owner also needs money from the exchange. Both would appreciate the monthly income over a lump sum as well, and it will help with taxes as the property is inherited and has increased in value. 

The buyer has proposed 13% downpayment, 4% interest, interest only payments for 3 years and then interest only plus $1000 for another three years and then loan paid in full. These terms do no seem favorable to me. Can someone help me structure and offer advice for terms and anything else to consider and include? 

Thank you!

Hi Mel! That’s exactly what I’m looking to do—seller financing. My rate isn’t great because I had to refinance into my own name post divorce. So it’s 5.5 or so. Have about 150k in equity. I just don’t know how to determine terms and how to structure. Any advice or help? 

I’ve had long term tenants in a property that I own. They want to purchase it but can’t get a mortgage. However they can afford the rent payments and have approached me regarding a rent to own situation when their lease is up in March. I’m open to this situation as it’s the property I planned to sell in the spring. What considerations and terms make sense? How do we structure this? Would love any input and advice!

I'm renting my home to a family displaced due to disaster and their insurance is covering the cost. Do I negotiate with the homeowner or insurance agent? I know the cap on ALE the family has through insurance and it's generous, but as we all know, there are many variables to when the resident's home will be repaired. Can anyone offer advice in this situation? The family anticipates being out a year, but I want to add about half that time as additional so am dividing their allowance by 18 to get a monthly price. Does that seem fair? 

What fees do I charge? I'm thinking:
Pet fee

Cleaning fee

Also considering rolling the following into the rental price: ongoing housekeeping, utilities, landscaping to make sure all of those are maintained. 

Thank you!

 Amazing! Perfectly laid out. Thank you so much. May I contact you about facilitating the 1031 exchange?