Shona LepisShe's Got Assets · REI Coach, She's Got Assets Founder, Cedar & Porch Properties, Shona Buys Houses

Challenging the Norms: Unlocking the Power of Mindset in Real Estate Investing #shorts

Name: Challenging the Norms: Unlocking the Power of Mindset in Real Estate Investing #shorts
Uploaded: 2024-01-02T05:37:25+00:00
Duration: 23 s
Channel: Shona Lepis
Description: In this short, the speaker explains how seller financing—specifically using interest‑only payments—benefits both parties. By structuring the deal so the…

2 Jan 2024 · 0 min

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In this short, the speaker explains how seller financing—specifically using interest‑only payments—benefits both parties. By structuring the deal so the seller receives only interest each period, the seller can spread out tax liabilities and defer capital gains, avoiding a large immediate tax hit. At the same time, the seller can offer a lower effective interest rate than the buyer might obtain elsewhere, making the deal financially attractive. The overall message is that interest‑only seller financing creates a win‑win by reducing tax pressure for the seller and lowering borrowing costs for the buyer.

and at the end of the day, he would be losing, right? He would be probably getting a much lower interest rate than I was paying him, and he would have had to pay all those taxes. And where seller financing does, it kind of spaces that out. It allows him to pay the taxes slowly over time at a lower rate, or in our case, we did interest-only payments. And what's beautiful about an interest-only payment is the seller is not getting hit on those capital gains yet,