Is anyone familiar with an installment sale? A family member has a home they are trying to sell. They are willing to let me buy it but would also hold a loan contract at a reasonable interest for the sale price (minus the down payment) so I could afford it. I understand there are some capital gain tax advantages here for the seller too. Definitely planning to speak to a real estate attorney still though would love first hand experiences too.
Thanks!

like
Posting as :
works at
You are currently posting as works at

In concept what you’re describing isn’t that different than a contract for deed which is probably the most common form of seller provided financing, at least in the residential marketplace.

like

I don’t have experience, but I know this is a thing. Often referred to as “Sub to” or “Subject to”. Can be great for all parties if done right!

Is this property currently a primary residence? If so, selling the property as Sub To might cause problems with the homestead exclusion, so be conscious of that.

Yes, first $250k if single / $500k if married and you lived in the home as your primary residence for 2 of the last 5 years.

Yes I have bought homes this way before. Technically, it’s a little different than “subject to” but similar idea. The advantage for the seller is that, instead of recognizing all the income from the sale in one year, they can spread it out over a number of years (which in some cases, keeps their tax rate lower). Also, they get interest income if they didn’t have another better use for the sale proceeds.

No, I don’t use an escrow company. I just pay the property taxes twice a year when they come due and pay for the insurance directly to the insurance company. You could use an escrow company if you are concerned about any aspect of that, but it will just be more costly. Technically, the seller should be sending me tax documents but they never do, and even though I don’t receive a 1099 I still deduct the interest and it’s not a problem.

Installment sales, or Contract for Deed transactions, are largely illegal or voidable in Texas. If you’re buying, get a Deed in exchange for signing a real estate note and mortgage lien documents.

Related Posts

Film industry fishies! After covid, what is the average of projects your company handles each year?

like

Big 4 EAs: How many partners do you support? How many do you think is realistic for the pay and your sanity?

like

I Currently work for an MNC in Kerala, I've 4.4 years of experience in software development. Currently leading a team of 6 developers. Recently I got an offer from Rakuten India, Bengaluru location. As Senior Software Engineer 1, Rakuten offered 13.5L as CTC + 1.4L as joining bonus. My current CTC is 7.2LPA. As per my research on the salary for this role at Rakuten, the offered one is low. 48days of notice period is left What i can expect from Rakuten India for this role?,How can i negotiate?

like

Tips on dealing with imposter syndromes? Building skills at a small firm? Feel like I can’t do research well in my niche field …

Sick of people saying don't wear a mask. Wear a mask people, if you have one. The CDC says only wear them when you are sick. But isn't that the tricky part of Covid19? That you can be asymptomatic?

like

Entering my 2nd year as a medical malpractice (insurance) defense litigator. My billables are 2200 per year, even during WFH and COVID while the courts are moving very slowly. Any advice as to what I should look into for an exit? I can’t hit those billables while maintaining my sanity.

like

So supposed to head out of town for a long weekend with friends starting the evening of 4/21. My one friend and her son tested positive for Covid on 4/13 and have been sick. She says she is coming on our trip. On the following Thurs 4/28 I need to spend time with my 92 year old diabetic father. Do I go on this trip? I don’t think my friend has quarantined long enough to be sitting with 6 people driving in a van to our location unmasked as well as in the hotel room. Would you go on this trip?

like

New wage code...what is in it for us?

like

Do most of you get your shirts and trousers laundered outside by professionals or just wash it at home in washing machine and iron it yourself... Is it worth spending so much money on laundry cleaners shop?

like

Looking for a lighter/puffer winter jacket and figured at this point I’ll wait until they go on sale. Does that ever happen with Barbour, Patagonia, Northface etc?

Has anyone tried Bohme? Thoughts?

like

Anyone have an opinion on Etro shirts for men?

like

Guys, I am on NP and i need one roles and reaponsibilities letter which will highlight all the reaponsibilities i had ..anyone know how to get that. Is there any portal or i have to reach out to someone

like

Hello. I just completed My Masters in Engineering (Mining Engineering) from Laurentian University. I have been looking for a job in mining or civil engineering from past 2-3 months, havent even got a reply yet, reason being i dont have canadian experience. Even though i do have 3.5 years experience from my home country, without canadian experience i get rejected at even entry level jobs. Does anyone know what to do ? please help me

like

What are the list of criteria to be promoted to AD?

like

News alert: all NYC schools are closed until 4/20

like

Can anyone please tell me what is sapience buddy app? I observed it got installed automatically on my machine.

Anyone at Stripe willing to chat about a strat and ops role? I know referrals don’t really matter unless you have worked with a person before, but hoping to still get some feedback and advice on my resume and the role. Thank you in advance!

like

Guys... is this right time to switch for hike? I have heard we have ongoing recession in IT.

like

Hello fishes,


Got an offer from Mphasis. Should i accept it right away or can i wait for a counter offer from another company?(it is under discussion currently)
Or
Accept it now and discuss negotiations later?

Its written in Mphasis offer letter that i can endorse the acceptance before the date of joining.

Please suggest.

like

Additional Posts in The Real Estate Bowl

If I’m a Real Estate Agent buying my own property, can I negotiate the Buyers Agent commission to be 0% instead of being paid the buyers commission? Essentially converting what would be Income into Cost Savings for tax purposes?

like

What is the term for giving your home buyers a credit for immediate renovations they will have to do before or upon moving in? And how does it affect the seller?

like

Anyone sell to Zillow? Got an amazing offer from them, but naturally my floor decided to start deforming right before inspection. No water damage - I can get someone out here to fix it ASAP, but wondering if it’s worth the hassle. Mostly worries inspector will think there’s water or foundation issues

like

I have over 12 years in B2B sales/sales management experience along with a graduate degree. I am wanting to shift gears and I am at a point where I can invest time in myself to learn through practical experience. The new industry I am wanting to pursue is real estate investment. I have read all the books but want some hands on experience on the property management side. How could I best leverage my skills for a role in this, and what should my expectations be for negotiation in compensation?

If anyone has problems with leaks or anything facade related I work in facade restoration, preservation, rehabilitation, retrofitting in NYC. I’d be happy to discuss potential solutions.

like

For those that built higher end homes, what kind of appliance budget did you have?

like

Can I get a commercial loan without 25% down?

like

Due to a family situation we are looking to move to a different state. Normally we would sell our current home and buy a new home in our new location. However, with todays prices and interest, will it make more sense to rent out our current home and rent a home ourselves vs. selling and buying immediately when we move? We are moving from Vegas to Sacramento and we are not sure how long we would stay in the new area. Thoughts?

For anyone that has bought a townhome from Lennar, are the walls fairly well insulated for sound?

What, if any, were your main complaints?

like

Is there an investment fund or group that anyone knows of? I heard of Fundraiser but it seems very convoluted. Looking for an investment group or development group to invest with

like

What do you all think of fundrise and start engine Real estate Reit ? Any experience? Would you invest here if you didn’t have the time to actually buy and rent properties? Any insight is welcome.
Thanks

like

Is it common for HOA to ask you to prove your car registration is up to date?

like

How long did it take you to buy your first million dollar home? What were the steps you took to get there?

My dream neighborhood is 10 min down the road but entry point is 1.2m. Currently my house is worth around $550k

like

Who is still in denial about a housing correction? The Fed just made another .75% increase. Powell said they won’t stop until inflation is 2%. He also said a recession would be better than the consequences of unchecked inflation. He announced he will bring rates to a “restrictive level” until “the job is done”. He said that labor demand needs to soften (ie: layoffs). He very explicitly said he wants to slash demand and that housing needs a “correction”.

like

Recently freed from the consulting game (starting end of next week) with a great severance and new energy around RE. Closed our first REPE fund last year as well as a sizeable personal portfolio in a large midwestern city, all on the side.
If you’re accredited and interested in putting some $ to work in this super low yield environment, ping me! Ramping up the next fund soon.

like

Has anyone used Loan Cabin to refinance? They seem to have the best rates.

like

Better to aggressively pay off $15k in student loan debt and pay off by early next year or make the min $200 payment and save the rest for down payment/emergency funds?

like

Wanting to move from NYC to either Austin or Tampa. Open to hear the pros and cons.

like

How big is to big for an initial investment property. Theres a 20 SFH portfolio for sale by me for about a mil. Is this to big to start with initially? I'm less worried about the Financials (feel comfortable on that end) and more worried about the managerial aspect.

like

Is a sloped floor of 1/2” over 10’ noticeable? I have to make room for conduit and cannot trench in my current place

likesmart

New to Fishbowl?

Download the Fishbowl app to
unlock all discussions on Fishbowl.
That was just a preview…
Sign Up to see all discussions
  • Discover what it’s like to work at companies from real professionals
  • Get candid advice from people in your field in a safe space
  • Chat and network with other professionals in your field
Sign up in seconds to unlock all discussions on Fishbowl.

Already a user?
Login here

Share

Embed this post

Copy and paste embed code on your site

Preview

Download the
Fishbowl app

See what’s happening in your industry
from the palm of your hand.

A phone with Fishbowl app

Scan your QR code to download
Fishbowl app on your mobile

Download app

Sign up for free to view this conversation on Fishbowl

By continuing you agree to Terms of Use and Privacy Policy

Already have an account? Log in

Sign up for free to continue using Fishbowl

By continuing you agree to Terms of Use(New) and Privacy Policy(New)
Messaging rates may apply

Already have an account? Log in

For account settings, visit Fishbowl on Desktop Browser or

General

Legal