., equipment) are excluded from 1031 treatment and are taxed separately—goodwill is typically taxed as a capital gain, while equipment may be subject to depreciation recapture taxed as ordinary income.To minimize taxes on the sale of the business, consider strategies such as Opportunity Zone investments, which defer gains until 2026 if proceeds are reinvested in a Qualified Opportunity Fund (QOF), or structuring the sale as an installment agreement to spread taxable income over multiple years.

It usually means there are problems to be solved for the seller which will translate to opportunities for you.Keep it simple on your first 2 deals to minimize your risk.All the best.

There are sometimes fees associated as well but they seem minimal and scale well since one line of credit can purchase multiple assets.Interested if anyone else is using this lending strategy and what your experiences/recommendations are.

A Title Company can distribute the proceeds based on the agreement, and consulting a CPA will help calculate tax liabilities and explore strategies like a 1031 exchange to minimize taxes.

Insurance companies want to fix it the cheapest way possible, and their goal is to minimize out-of-pocket expenses like this one.  

Obviously tough to give advice based on minimal info and no info on your personal situation.

If maintaining strong cash flow and minimizing risk are more important, Option 1 is the safer choice.Good luck! 

I would buy a deal that at least minimally cashflows (they exist) and then plan to refi in the 18-36 month window.

You can't decide which one to choose based on the minimal information you provided.

And it minimizes theft.