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Seller Financing In An Exchange September 13, 2010

Posted by Erik Swanson in Articles, Investment Tools, Research/Data, Uncategorized.
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There are mixed opinions about what the Jan. 1 reversion of the tax rate on capital gains from the current 15% back to 20% will mean for the CRE market. Some believe there will be an increase in the number tax deferred exchanges; others predict an increase in profit taking in the face of higher taxes. We’ve certainly not seen a “sell off” in our market, but increasingly we’re consulting with owners who are looking at their options.

With a market in flux and most commercial lenders still on the sidelines, many prospective buyers may have difficultly in obtaining financing for their 1031 investments. Increasingly, sellers have looked to seller financing as a way to attract potential buyers. Many times our clients are not aware that they are able to structure an exchange if the seller is providing financing. It’s slightly more complicated and perhaps not a fit for every deal, but its option that’s certainly available. Cris Anderson of Asset Preservation, Inc. a national Qualified 1031 Intermediary, has provided us with some timely information for sellers wishing to carry back a note while defering taxes.  See the full details of Exchange Secure – Seller Financing here.

 

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