Quote from @Chris Seveney:
@John Dean
Let’s say you are in the 28% tax bracket - after taxes you are making 5% on that money - how much down payment the borrower putting
Would you be better to sell and collect qualified dividend income?
It’s like winning lottery - you take lump sum or annual
When people say well banks do it, the banks can make a $100,000 loan with only $10,000 (fractional lending - which you and I cannot do).
That’s super helpful.
my back up plans to that idea were to either.
A. 1031 it into a new build with far less maintenance costs for another 3-5 years before recycling that same concept.
B. Using the money from selling that home to continue buying ETF’s (paying dividends) and continue offering private money loans to home flippers I partner with.
(but I assume the private lending would put me in the same situation as doing seller finance if I’m typically loaning at or around 10-12% after taxes) would I be correct with this statement?
