Why Owner Financing Isn’t Such a Bad Thing As a seller, do you ever wonder why buyers and investors bring up owner financing?
There’s a reason.
They’re trying to save you money, by deferring capital gains tax!
Capital gains tax is what home owners pay the IRS when they sell an asset, such as a property.
Capital gains tax is obtained by the difference between what you paid for your property and what you sell it for.
With seller financing, a seller and a buyer can agree upon terms in which the buyer and the seller both win.
For example, a buyer or an investor can agree to have the seller receive payments on their equity.
Both the buyer and the seller agree on how much payments the seller can receive each month, at what percent, and for how long.
For example, if a seller wants to sell their house for one hundred thousand dollars, the buyer can pay the seller in monthly installments.
Those payments could amount to 360 payments of $665.00 with an interest rate of 7%.
At the end of the term, the seller receives $239,000.00!
In the end, the seller receives more money at the end of the agreed upon term!
It is important to note, that the payments can only be calculated by how much your property can pay.
This is one of many ways that can save sellers money.
Do you have a property you need to sell?
Visit www.kickyourhousetothecurb.com.
Just fill out the form and let us help you sell your house fast!
Or call (202) 460-9786.
Topic: Owner carry or owner financing
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