Sell Faster AND Defer Capital Gains? Here's How #investment #realestate
Why It Matters
Understanding and correctly structuring seller financing helps agents close deals with reluctant sellers, expands the buyer pool, and provides a legitimate tax-deferral strategy for sellers who lack immediate 1031 exchange options. It affects cash flow, tax timing, and deal marketability for both parties.
Summary
The video advises real estate agents to position seller financing primarily as a sales facilitator rather than a source of extra income for sellers. Agents should counsel sellers that offering market-rate, buyer-friendly terms is essential—above-market terms add no value and deter buyers. Seller-financed sales can also help owners defer capital gains tax when they don’t need immediate cash, by spreading taxable gain over loan payments instead of triggering a full tax event at closing. However, the speaker cautions that this only defers taxes until the loan is paid off, and sellers remain subject to IRS rules and eventual tax liability.
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