All Forum Posts by: Tim Silvers

Seller sells to an irrevocable trust on a 30-year installment sales contract. Trust sells to buyer for cash. Trust invests the cash to make the payments on the installment sale to the seller. In 30 years the balloon payment is due to the seller and that's when the taxes are due.

Coupling a monetization loan to an installment sale accomplishes the same thing but puts cash in the sellers hands that can be re-invested. I think THIS can be better than a 1031 exchange because the seller will start off with a fresh depreciation schedule in the new property. That immediate tax savings in the new property is better than the infinite tax deferral of the 1031 exchange.

Don’t you just love the “other” write-in? 
and the do you know if write-in? 

I always go overboard on TDSs    Hell I even give the one I got from my seller.  

I would rather find out in 16 days they aren’t a buyer in stead of 60.  

Did your inspector miss this? You should have gotten the same discount when you purchased the property. Personally I’d be mad at your inspector and hire thsi buyers inspector from now on.

As a long-time Contractor, Investor, Home Inspector, and more, here is my take....

Those pipes are past their 'expected life span'. Period. Any potential buyer with an IQ above 50 will insist that these are replaced or they are given a credit. 

This can be a huge expense. I would say about $8k average, sometimes reaching towards $20k depending on length of run and the difficulty of tie-in to the City main.

I would not, as a buyer, wnat to take a chance on this..even if they are working well now, it is a ticking time bomb and a large expense.

So I would wrap your head around the concept of offering a credit towards this item. Just my $0.02

Ps. Their inspection contingency is still valid a week from closing? It should have been 5-10 days long starting when you accepted their earnest money. NEVER do that again. That’s a really poorly written contract, you might need a new realtor too. I’d get 2 professional quotes in writing (pay for them if needed.Use those figures to come to an agreement. Figure out if you’ll get another offer near your current one. (Has your realtor been taking back up offers or is there zero interest?) then calculate 203 months of holding costs and the lower offe you’ll have to accept if you have gotten no backup offers.