Covert L/O’s to Seller financed “paper” - Posted by Micahel Morrongiello
Posted by Micahel Morrongiello on September 28, 2005 at 13:11:47:
Its possible to “convert” existing Tennant buyers under a Lease option type agreement into a SELLER FINANCED sale where you would sell to them and then also finance them. The resulting seller financed “paper” if set up correctly can be payable to an exchange accomdator or intermediary. The “paper” can then be sold (at a discount) to generate cash proceeds that will go right back into the accomdator’s account (remember you cannot have any constructive receipt of the funds)
You can then complete your tax deffered exchange using the cash proceeds from the sale of the “paper” once you have designated your replacement properties.
Clearly the property type, payors initial option deposits, rental payment histories, additional cash to be put down if any, credit profiles, credit scores, and your ability to properly document all of this will come into play when attempting to structure the seller financed “paper”
Best to your success;