EXACTLY! - Posted by Floyd Powell
Posted by Floyd Powell on March 21, 2000 at 13:03:56:
If you are referring to that Bassman reply then you are seeing what I see. Who in their right mind is going to accept that kind of payment against a loan of such great amount! Where will the owner get the balance to pay the bank its’ monthly payment? Wouldn’t you worry about the payments being made? I sure would! Your correct JPiper, a lot of people need to brush up on some basic math around here.
if seller agrees… - Posted by David
Posted by David on March 20, 2000 at 19:30:39:
use that method. Bassman covered how it accounts for equity build up that doesn’t build up when there is interest only.
if i were the seller i wouldn’t take 2+% per year, but if your seller agrees with that go for it. Of course then you have the IRS problem of IMPUTED interest.
David
Re: I Agree With Mr. Piper - Posted by Ted D.
Posted by Ted D. on March 21, 2000 at 15:44:20:
I find it interesting Floyd that you have not contributed anything substantive, but have only re-stated someone else’s opinion. For your information, the NOI is on 3 units and I will be living in one. Just because I asked for help figuring out a no interest loan does not mean I am completly clueless.
Actually … - Posted by Ted D.
Posted by Ted D. on March 21, 2000 at 13:15:15:
The owner owns the property free and clear, so there is no bank to make payments to.
Re: Actually … - Posted by Bassman
Posted by Bassman on March 21, 2000 at 13:28:00:
Thank you for clearing that up Ted. I kinda got the impression that was so, and answered as if it was. Please read my answer to Jim Piper as it explains my position.
Best of luck on this deal.
Scott Cooper
Re: What’s imputed interest? (nt) - Posted by JoeB(Atlanta)
Posted by JoeB(Atlanta) on March 20, 2000 at 21:44:42:
Hi Ted, I think imputed interest is what the IRS will ‘assess’ against the seller who carried back a mortgage, if he did NOT charge any interest.
In other words, the wonderful IRS folks think that if you were willing to not receive any interest on your seller financing, then they’ll ‘smarten you up’ by charging you a penalty or something (I’m not sure on the details here) to make up for your zero interest.
Ask your CPA for more details.
Best of success,
Joe Brillante