Exploring More Alternatives
Clients like to know their alternatives. We help sellers consider a multitude of potential solutions. This information helps clients choose one or more solutions that they feel best fits their needs and circumstances.
An example of a solution that is new idea to most sellers is the Enhanced Installment Sale. This strategy involves an installment sale to a third-party intermediary who then immediately resells the property to a final buyer with the same price and terms negotiated by the seller. At approximately the same time, the seller borrows a very high percentage of the property value from an independent lender. The lender will rely solely on the intermediary’s installment payments to the seller as the sole source of funds to repay the loan. This relieves the seller/borrower of the financial risk of the insolvency of the intermediary. The result is the seller may obtain approximately 10-15% more cash at closing compared to an outright sale. The seller can use the cash for any investment purpose. The taxes are deferred for thirty years.
No single solution is right for everybody which is why our process helps sellers explore their options.
To learn more, contact us to have a conversation about your circumstances and discuss how we may be able help improve the financial results of an upcoming transaction.