Model carrying the note instead of selling for cash. See your monthly income, total interest earned over the term, installment sale tax savings, and net comparison vs. a straight cash sale.
Your property & seller finance terms
Works for primary residences, investment properties, and multifamily.
Purchase price + improvements - depreciation
Seller Finance Terms
20%
5%50%
Monthly Payment to You
—
P&I on seller note
Total Interest You Earn
—
Over full note term
Down payment at close
—
Cash received at closing
Tax paid in year of sale
—
vs. full tax on cash sale
Total net — seller finance
—
Principal + interest - tax
vs. cash sale net
—
After all taxes
Seller Finance vs. Cash Sale Comparison
Cash received at closing
—
Tax paid at closing
—
Net at close (seller finance)
—
Total note principal collected
—
Total interest income earned
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Remaining installment tax
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Total net — seller finance
—
Total net — cash sale
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Seller finance advantage
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Optimize your down payment. Find the exact down payment percentage that maximizes your tax deferral while meeting your income goals.