Tyler Combs structures seller-financed real estate deals by first understanding what the seller actually needs: a target price, income stream, or tax savings. He then reverse-engineers the purchase price, interest rate, and down payment to hit those goals. Sellers avoiding capital gains prefer low down payments since larger ones trigger immediate tax liability.
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stuff? It all starts with listening to the seller, right? So if they have a specific number in mind they want to sell the property for, then you can reverse engineer the terms, the interest rate, the down payment, everything to get that number for them. If they care about matching the income stream that they're used to, then you reverse engineer the purchase price and the interest rate to get them that number of the income stream they want. So it really has to start with the seller and asking some really pointed questions about what their goals are with selling the property. Sometimes they don't know, and it's just a journey you take with them to figure that out. Some trial and error, testing the waters. Sometimes you don't get enough access to that seller to really figure it out. Sometimes it's through a broker or another third party, an attorney, and you just have to throw some stuff out there to see if they bite. But the— their motivations are everything. And if they are really trying to avoid capital gains, then that down payment by their own goal setting is going to be low because if they have a high down payment, they're going to be paying capital gains on that right off the bat. So a lot of times they have