ZERO % INTEREST BY Ray Como????? - Posted by jorge

Posted by Bronchick on July 26, 2003 at 11:43:50:

Imputed interest usually occurs where the seller is trying to jack up the price to get a higher payment and avoid paying taxes on the interest income. A good example is an owner-carry sale on a personal residence where the principal portion of the loan would likely be exempt from gain.

However, there is little chance of this happening in a distress sale (the only time an principal-only loan would happen) since the seller could always argue that he had no other options and thus negotiated the principal-only deal.

ZERO % INTEREST BY Ray Como??? - Posted by jorge

Posted by jorge on July 25, 2003 at 23:58:00:

Has anybody heard of what Ray como suggests doing. I think it has something to do with buy a house based on what the property would rent for then subtracting PITI and mangagement and whatever is left is what the property is able to pay for the equity that is left with 0%… anyways go to this link and tell me what you think. Sounds good to me… but what do I know… I am still learning here.
The link is
THe reason I ask is because I have a seller that might be willing to carry a 0% note on his equity and me assuming his mortgage.

Any comments would be appreciated…



Absolutely - Posted by William Bronchick

Posted by William Bronchick on July 26, 2003 at 07:21:17:

I’ve done zero-interest financing a half a dozen times.

All you need is a seller motivated enough…

Question … - Posted by Robert Campbell

Posted by Robert Campbell on July 26, 2003 at 10:33:31:

Hi Bill,

Is there any potential legal problem (eg. lack of consideration) for having a seller carry back a zero percent loan?

Robert Campbell

Re: Question … - Posted by Bronchick

Posted by Bronchick on July 26, 2003 at 11:41:32:

There is consideration; the principal amount.

Re: Question … - Posted by Shawn J. Dostie

Posted by Shawn J. Dostie on July 26, 2003 at 10:48:27:

In addition to that question, are there any tax ramifications to the seller such as imputed interest at tax time?