The IRS cross-references your 1098s with claimed deductions, raising concerns if discrepancies arise.Private Lenders and Forms 1098: Private lenders are required to send Forms 1098, but only if they meet specific criteria:The private lender operates as a “trade or business,” distinguishing professional lenders from casual lenders like friends or family members.The loan is issued to an individual or a disregarded single-member LLC.The loan is a mortgage secured by real property.The annual interest paid on the mortgage was $600 or more for the previous year.The conditions leave some room for interpretation, particularly regarding the “trade or business” clause.

How do you structure your leases regarding tenant - landlord responsibilities? 

At a very high level a property has a “tax basis”, once you exceed that basis you are subject to taxes, whether that happens when sold and paid in full or paid over timeThe loan provided by seller financing is like any type of loan where the interest is taxed at ordinary income rates.

Commissions are too high and Realtor's do not do what they once did.

Considering the high interest rate, the projects and COC return seems too good to be true.

They were fairly highly rated, and performed well on my extensive screening interview (we went over an hour).

Consulting a real estate attorney is highly recommended, especially for complex transactions or if the standard forms need modifications.

Regarding your concerns of the going rate over 5% and 5 year terms,  since a standard mortgage is 7% right now, I would expect 7-8% minimum for a seller financed rate. 

I highly doubt he is building homes in Texas from his self imposed exile to Portugal to excape massive litigation that was/is coming his way.He is a marketing guy and receives a commission for referring you to the builder developer who actually owns the properties.. at least that was his SOP in the past. 

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