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  • January 30, 2010 at 1:53 PM #16972
    scaredyclassic
    Participant

    I had an idea for making offers on houses to sellers who own the home outright but have unrealistic price expectations. Offer 10% down and ask for owner financing at asking price divided by 360. The advantage to the buyer is, no interest loan and no pmi. The advantage to the seller is they get to say they sold it for their asking price. If the seller were dumb, and just got the house without making payments, say through a probate sale, and was just fixated on the asking price while ignoring the market, might an agent try to sell this to the unrealistic and math-impaired seller? I have a particular place in mind I was thinking of trying this on. Downsides? Higher tax base. No interest to deduct. Anything else? Thoughts?

    January 30, 2010 at 1:58 PM #507255
    patientrenter
    Participant

    Taxable implied income to the buyer from the seller on the loan interest forgiven. IRS publishes these rates. I am sure they are low now, but could go up in the future.

    January 30, 2010 at 1:58 PM #508159
    patientrenter
    Participant

    Taxable implied income to the buyer from the seller on the loan interest forgiven. IRS publishes these rates. I am sure they are low now, but could go up in the future.

    January 30, 2010 at 1:58 PM #507904
    patientrenter
    Participant

    Taxable implied income to the buyer from the seller on the loan interest forgiven. IRS publishes these rates. I am sure they are low now, but could go up in the future.

    January 30, 2010 at 1:58 PM #507810
    patientrenter
    Participant

    Taxable implied income to the buyer from the seller on the loan interest forgiven. IRS publishes these rates. I am sure they are low now, but could go up in the future.

    January 30, 2010 at 1:58 PM #507401
    patientrenter
    Participant

    Taxable implied income to the buyer from the seller on the loan interest forgiven. IRS publishes these rates. I am sure they are low now, but could go up in the future.

    January 30, 2010 at 2:08 PM #507815
    scaredyclassic
    Participant

    how does that work? can’t you contract for a 0% loan?

    January 30, 2010 at 2:08 PM #507909
    scaredyclassic
    Participant

    how does that work? can’t you contract for a 0% loan?

    January 30, 2010 at 2:08 PM #507406
    scaredyclassic
    Participant

    how does that work? can’t you contract for a 0% loan?

    January 30, 2010 at 2:08 PM #508164
    scaredyclassic
    Participant

    how does that work? can’t you contract for a 0% loan?

    January 30, 2010 at 2:08 PM #507260
    scaredyclassic
    Participant

    how does that work? can’t you contract for a 0% loan?

    January 30, 2010 at 2:35 PM #507820
    patb
    Participant

    interesting.

    so if the price is 555,000, you would offer 55K down
    and $500,000/360 per month in payments?

    now if the IRS wanted to assume Imputed Interest?
    would they discount to the 30 year Interest rate?

    or would the buyer be required to report the capital gains on the sale, pay that at 18% and the payment is over time?

    would the seller be able to deduct payments assuming
    a 30 year interest rate?

    January 30, 2010 at 2:35 PM #507265
    patb
    Participant

    interesting.

    so if the price is 555,000, you would offer 55K down
    and $500,000/360 per month in payments?

    now if the IRS wanted to assume Imputed Interest?
    would they discount to the 30 year Interest rate?

    or would the buyer be required to report the capital gains on the sale, pay that at 18% and the payment is over time?

    would the seller be able to deduct payments assuming
    a 30 year interest rate?

    January 30, 2010 at 2:35 PM #507914
    patb
    Participant

    interesting.

    so if the price is 555,000, you would offer 55K down
    and $500,000/360 per month in payments?

    now if the IRS wanted to assume Imputed Interest?
    would they discount to the 30 year Interest rate?

    or would the buyer be required to report the capital gains on the sale, pay that at 18% and the payment is over time?

    would the seller be able to deduct payments assuming
    a 30 year interest rate?

    January 30, 2010 at 2:35 PM #508169
    patb
    Participant

    interesting.

    so if the price is 555,000, you would offer 55K down
    and $500,000/360 per month in payments?

    now if the IRS wanted to assume Imputed Interest?
    would they discount to the 30 year Interest rate?

    or would the buyer be required to report the capital gains on the sale, pay that at 18% and the payment is over time?

    would the seller be able to deduct payments assuming
    a 30 year interest rate?

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