As I see it here are the retiring landlords options and opportunities:

* Sell and pay the Taxes. (Ochs!) 30-35% goes to the taxman.
* Sell a do a 1031 Tax Deferred Exchange. (But I thought you were tired of tenants)
* Donate the property to a Charity for an annuity payment. (Property needs to free & clear and your cash flow is controlled by the Charity and their investments)
* You could do a master lease if the lender allows it. (But you’re still a Landlord)
* Last but not least… In fact it’s the best option of all! Seller Financing. Sometimes referred to as “Owner will Carry.” (Opportunity!)

OK! OK! Lots of seller’s won’t entertain the idea of financing the deal for the buyer’s and in the past I’ve have been in complete agreement with them. But, things have changed in a lot of respects, so please hear me out on this. The last 3 years have shed a lot of light on the security or lack of it, on our investment markets. If you were a believer in the security of real property as an investment, then you’d surely believe in a loan or loans that are properly structured, using cash flowing real estate as security or collateral. Right!?

The key to Seller Financing or Owner Carry is how the transaction is structured. Over the years I’ve seen lots poorly structured deals and folks that accepted a second and sometimes third Trust Deeds just to make a deal happen. This was then, and still is now, a disaster for the seller as there is no security or control in this type of deal and it has a structure that can only be compared to a train wreck! The majority of the problems I have seen with the seller financing can be attributed to this, take it or leave it squeeze play at the closing table. The result of this unplanned, last minute financing alternative to patch up deals usually result in a cut and paste or substitute the names type documentation by well intentioned people who are not qualified or plain just don’t know what they’re doing. I have a combined 34 years experience and exposure to financial and real estate markets, but I have never underwritten a loan nor have I participated in a seller-financed deal without the documentation being reviewed and approved by an expert in the field.

I defer to this task to a skilled Lady who has become known in the industry as the “Note Queen.” This is a special skill, which requires a sound knowledge of how loan agreements and promissory notes are structured when issued, so the structure protects the security and integrity of the documentation, which is essential to maintaining the value and marketability of the note. The key to seller financing is having the deal structured to suit the seller’s needs, be acceptable to the buyer and be a marketable security. It may be one loan, or it could be two loans, or a whole bunch of other options that will make the mortgage (note) marketable for top dollar if the sellers need to raise cash or borrow against it. That’s our idea of protecting the seller and that’s why we have an alliance of professionals that structure and complete the Seller financing loan process.

There are different ways to structure a deal depending on your particular situation, but there are distinct advantages to being the bank or lender in your transaction as you can see from the few benefits I have outlined below and an example of a deal and loan structure complements of the Note Queen.

Many of these strategies will allow you to:

* Get the highest possible price for your property
* Get powerful and simple estate planning
* Defer capital gains
* Protect yourself and your property from litigation, judgments, tax liens and probate issues
* Retain an equitable interest in the property when a buyer’s bank won’t allow a 2nd seller carry back note to be recorded
* Avoid holding the property and risking further short term depreciation, and having the hassle of tenants, toilets and taxes at a time when you’d rather be enjoying your life

By using a combination of owner financing strategies, title holding trusts, private money and commercial hedge funds, we can usually find a way to meet your most pressing needs if you’re willing and able to be flexible.

Using promissory notes on a $1,500,000 complex owned free and clear:

Purchase price: $1,500,000

Down payment: $300,000

1st note & deed: $1,050,000 (7.5%; $7,341.75/month; due in 8 years=$947,921.77)

2nd note & deed: $150,000 (8.5%; $1,153.37/month)

Seller sells 60 pmts: $320,000 (after receiving the 1st pmt)

The seller gets:

Down payment: $300,000 (minus closing costs)

Proceeds from note sale: $320,000 (minus closing costs)

The first pmt: $7,341.75

35 pmts starting in 5 yrs $7,341.75: $256,961.25

Balloon in 8 yrs: $947,921.77

96 pmts on 2nd $1,153.37 $110,723.52

Balloon in 8 years: $137,567.03

TOTAL TO SELLER: $2,080,515.32

Title Holding (Land) Trusts can be used to defer 100% of capital gains and depreciation recapture instead of a time-constrained and complex 1031 exchange (and you can preserve your ability to do an exchange your beneficial interest later if you wish).

Private money and commercial hedge funds are providing funding for buyers that the banks just can’t touch. My private money and hedge fund connections will help potential buyers for your property get the funding that will help you get what you most want and need out of the sale of your property.

And if you’re selling because you owe too much on your property,

I can help you with a commercial loan modification.

If you’d like to know more or see how this type of transaction would fit in your plans, let’s get on the phone for a few minutes. Then we’ll know if it makes sense to arrange a meeting where we can get together and discuss all of your options.

Call 562-684-4011 or enter your contact information here and give a brief description of your situation along with the best time to call you and someone will be in touch with you within 48 hours.