The seller saved $3.2 million in taxes just by becoming the bank. 🏦 This is why smart sellers don’t make a traditional deal with a buyer. Click link in bio for a live breakdown on how to structure deals like this.

For example, this seller sold this to us for $19.5 million. He bought it originally for $5 million. The IRS is going to say, "Well, you bought it for $5 and you're selling it for $19.5, so you have a $14.5 million taxable liability." When we buy it on seller finance, the seller doesn't have to pay those taxes, which is crazy. What would be their capital gain? Probably 30%. Oh, yeah. The seller would have to pay $3.2 million to the IRS for selling that deal on the cash market. But when they sell to us and they become our bank, they pay $0.00 in taxes. So not only do we give them a higher dollar amount, we give them some interest along the way, which is nice. It's also secured against an asset that they know. And if I default on the seller finance loan, they just come and take the asset back.