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:
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.