Seller conversation · not a read-aloud
Handle the room.
Twelve objections with this file’s numbers already swapped in. Use it as a starting point, not a script. Their CPA and their attorney still have the last word.
Live file · rev 1
$500,000 · first $350,000 · second $150,000 · check $14,650
- AFR floor met
- AFR not locked
- Below usury cap
- CLTV 100% over cap
- Senior DSCR
- Investment occupancy
- Zero down · check still due
They think carrying paper means giving the property away and waiting years to get paid.
You're not discounting the price. A lump-sum close means the entire gain hits this year's return. Under IRC §453 you recognize gain as you actually receive principal, and you earn interest the whole time on money that would otherwise go to the IRS. You still get the full $500,000 — just not all in one tax year. Year one you collect about $6,735 in interest on the second, and the first-position lender already wired $350,000 at closing toward your price.
If they push
If they truly need a defined cash amount at close, size the first-position loan to that number and carry only the residual. The Stack Method is built for that split. What they should not do is take a discounted cash offer just to avoid a conversation with their CPA.
Don’t
Don't promise they 'pay no tax.' Depreciation recapture under §1250 is recognized in the year of sale and cannot be deferred. Have their CPA run Form 6252 before anyone signs.