Structured Installment Sales Explained
At Installment Sale Realty, we are the experts in structured installment sales solutions.
We also understand that many people aren’t familiar with the process and how it can save you money by lowering your capital gains taxes.
Below, we explain structured installment sales and how they can benefit you.
ISR’s “Structured” Installment Sale
Every Sellers’ Installment Sale transaction is custom tailored to meet the specific financial needs of the Sellers. ISR uses the term “structured” to mean a customized transaction designed by a capital gain tax reduction transaction LLM Taxation Attorney.
ISR preferences investing the money that Buyer transfers at closing into private wealth management at top tier private wealth banks, further, managed by a top 250 wealth advisor located in Boston, Massachusetts. This provides two levels of safety as a mechanism to provide Sellers security that investment criteria to produce predictable installment cash flow disbursements. Sellers can more flexibly choose installment sale payment streams to be quarterly, semi-annually, annually or to delay payments first to build up and increase fair market values of investments prior to the first payout being made to sellers.
Other service providers simply use the term “structured” to mean that money is invested into an annuity with some downside investment protections.
ISR often feels that the cost of such annuity investments is simply too high and not flexible, and that better results can be achieved with ISR’s private wealth management strategies.
When ISR is directed by a Seller to present an annuity type investment scenario, ISR utilizes a specially created annuity product specifically designed to produce installment type cashflow payouts.
ISR’s “Structured” Installment Sale is a better transaction!
Installment sales are Buyer debt driven sale transactions where the “Seller is acting as a Lender”.
Seller is the benefit holder of the periodic payment cash flow streams (obligations) Buyer is making to the Seller.
ISR’s transactions assume (via a debt assumption agreement) these obligations from Buyer and collects Buyer’s money at closing to put in place sound financial planning and implementation to achieve making these periodic cash flow payments to Seller.
Conversely, other service installment sale providers simply get assigned Buyer’s payment obligations. This assignment transaction structure has less tax compliance integrity as it adversely raises issues of “Assignment of Income Doctrine” concerns.
ISR’s “Tax Deferral Expertise” is based on 20 years of LLM Tax Attorney, Capital Gain Tax Reduction Transactional Experience!
ISR is founded and directed by a retired LLM Taxation Attorney. He has 20 years of capital gain tax deferral experience in the sale of appreciated real estate.
Since 2016, he has shifted tax deferral focus from 1031 Exchanges to Installment Sale Seller transactions with such transaction sizes ranging from $300,000 to $16 million. Now, ISR takes these successes and hand-selects which tax reduction advisors we bring on to work with Sellers of appreciated real estate.
Installment Sales applies to, and can be implemented on, personal real estate which has never been rented out (a disqualification factor for 1031 Exchanges).
Installment Sales also often are a better fit for Sellers of appreciated investment real estate who don’t want to exchange into and have to manage a new investment property or take on more bank financing debt.
Installment sales can also be used to save a failing 1031 Transaction.