Why should I consider selling my house for payments?
Also known as ‘seller-financing’, this is an incredibly powerful tool for both Sellers & Buyers. It can provide much higher profits for a Seller AND in many cases reduce their tax exposure significantly.
DISCLAIMER: We are not providing you with legal or tax advice. Please seek legal & tax advice from your lawyer & CPA before deciding what is best for you and your situation.
Higher Sales Price
Typically, you get a higher sales price when you sell on terms versus an outright cash deal.
Passive Income
Mailbox money…right to your mailbox. You just collect a check.
No Tenants, No Problems
Unlike a rental property, here, you don’t have to deal with tenants or leaky toilets. That is all the Buyer’s responsibility.
Security
The property is the collateral for the loan. If the Buyer defaults on payments, you have the ability to foreclose. This is an excellent form of security for your investment, typically only found in real estate.
Tax Benefits
If you made a profit on the sale of an investment property, you may have a capital gain exposure PLUS depreciation recapture tax. This can eat into your profits significantly. Please seek counsel from your CPA on what tax benefits are available to you.
Frequently Asked Questions
Yes! The mortgage you hold is an asset, just like a piece of real estate. Whoever inherits the asset would be the person or entity collecting payments.