scheming concept for good deal

[scaredyclassic]

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?

[patientrenter]

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.

[patientrenter]

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.

[patientrenter]

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.

[patientrenter]

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.

[patientrenter]

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.

[scaredyclassic]

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

[scaredyclassic]

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

[scaredyclassic]

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

[scaredyclassic]

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

[scaredyclassic]

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

[patb]

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?

[patb]

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?

[patb]

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?

[patb]

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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