Here’s an example of a deal that never would have happened several years ago!
We received a call from a broker we work regularly with regarding the structure of his client’s Exchange. The following is a break down of the sale of a $1M apartment building, our clients were the buyer.
The apartment owner was not interested in an Exchange. Consideration for the purchase of the building consisted of:
Rental House$200k
Buyer’s Note$120k
Cash$80k
Seller Carryback$600k
Total Consideration$1M
The initial deal was structured with new financing in place of the short-term seller carryback but financing was not available due to lender’s perception the buyer was only bringing in $80k in cash down payment. The short-term note enabled the deal to get done and permanent financing to be available after the deal had been completed as a refinance. Our client was happy and his taxes deferred.
