We strive to expedite our due diligence process as much as possible. However, certain factors beyond our control affect project timelines, including interactions with county authorities and third-party service providers such as local water, electric, survey, well, septic, and engineering companies responsible for property analysis. While we have established connections to facilitate the process, it's important to note that some aspects still require time. Unlike many of our larger competitors who typically take up to 24 months or more to complete similar projects, we usually finish within 9 to 12 months in most cases.

A real estate seller might prefer seller financing over a cash transaction due to tax-related advantages. Seller financing allows the seller to spread the capital gains from the sale over time, potentially reducing their immediate tax liability. By receiving payments in installments, the seller can minimize the impact of a large, one-time capital gains tax hit, benefiting from lower effective tax rates. This arrangement can also provide opportunities for the seller to take advantage of deductions and defer taxes while earning interest on the financed amount, making it a tax-efficient option compared to an all-cash sale.

IRS Section 453

https://www.law.cornell.edu/uscode/text/26/453

This IRS code provides guidelines and regulations that dictate how the tax treatment of income from selling property over time is handled. It outlines the rules for recognizing and reporting income when a seller receives payments in installments, enabling individuals to potentially defer taxes and spread their tax liability over the installment period. These regulations are vital for real estate sellers to comprehend, as they impact how income from such transactions is taxed, potentially offering tax-saving opportunities compared to lump-sum cash sales.

IRS Section 453

https://www.irs.gov/publications/p550