Disadvantages of Cash Deals:

 

• The buyer is in stronger position to purchase a property at a much lower price than asking.

 

• The seller is hit with large capital gains tax due to Uncle Sam.

 

 

Benefits of Owner Financed Deals:

 

• Higher Price: The seller is in a stronger position to sell the property at a much higher price.

 

• Pay Less Taxes: The seller usually pays less in taxes, reporting only the income received in each calendar year. This can be particularly advantageous if you have owned the property for several years. Furthermore, you can combine the installment sale with an I.R.C. 1031 Tax-Deferred Exchange for further savings. In many cases, the sale of a property, by an installment sale, will net the seller comparatively higher yield than other reinvestment opportunities of equivalent risk.

 

• Monthly Cash Flow: Payments from a buyer increase the seller's monthly cash flow, resulting in increased-disposable income.

 

• High Interest Rate: Seller can carry a higher interest rate than a seller might receive in a money market account or other low-risk types of investments.

 

• Fast Closing. an owner-financed transaction can be consummated in a matter of days, since there is no appraisal, underwriting, survey, or other nonsense involved. In many cases, you will be able to sell the property yourself, saving thousands in real estate broker fees (6% - Standard fee off sold price).

 

 

Owner financing is an intelligent, easy and beneficial alternative  for optimizing the return on your asset, namely your property. If you can appreciate a steady monthly income and the tax benefits of owner financing, then I encourage you to start today by contacting Mallia Investments, LLC to help you cash-in

big on your real estate!