Posted by dontjustrent on November 17, 2009 at 12:21:23:
I am trying to buy this house as my primary residence not as an investor trying to profit/flip/buy-hold/etc.
I am trying to buy for me as cheap as possible while giving the owner more of it.
Thanks for your ideas
Tax advantages for SELLERS (financing) CPA’s - Posted by dontjustrent
Posted by dontjustrent on November 16, 2009 at 10:20:44:
I am trying to buy a house where the owner will finance. He is waiting for my offer. what I want to do: (please help me out)
He wants $700k and is willing to finance for many years. I know I can get him down by bringing up what a realtor will charge, plus title, transfer,etc. fees. So in reality he will end up with lets say $600k and some change.
How can I pay less for the house while at the same time giving him more? How can I set it up where lets say I pay $650 and he gets those $650k? I will pay closing or whatever I have to do. he is open to any ideas.
bottom line, how can I pay less while he receives more?
Re: Tax advantages for SELLERS (financing) CPA’s - Posted by edwin
Posted by edwin on November 19, 2009 at 21:20:17:
Sounds like you could take advantage of the spread between cash now and payments over a period of years. The cash price might be $650k now, but you’ll pay him $700K if he finances it. You’re not really paying more, since the 50k price difference is negated by the payments you negotiate. And the seller is not necessariy getting $700k, because the present value of $700k in the future is less than $700k. He may not be aware of that, or may simply not care.