Whether it's a business with multiple owners or a property that's owned by multiple individuals (such as within an LLC), finding agreement on an all inclusive exit plan can be difficult and sometimes insurmountable.
Disagreement is understandable when there are different people with different interests, but it doesn't have to "kill the deal." Either the 453 Commercial Loan and/or the Structured Sale program can provide the flexibility for multiple owners/sellers to have very different exit strategies, defer taxes and close the deal.
For example, let's assume a property for sale has three equal owners, each in different stages of their life with different ideas of what to do with the money. Either program could be used to provide three separate exit plans, one for each owner and subject to each Owner's objectives.
Owner A would like a monthly income for 20 years to supplement his existing retirement plan.
Owner B would like to defer the recognition of the proceeds for five years until another income source ceases and then begin receiving income from the sale for the next 10 years.
Owner C wants to defer the recognition of the sale for three years and then request a lump sum balloon payment to reinvest in another development property or similar venture.
If the 453 Commercial Loan program is used, payments to the seller would come from a participating bank. Plus, the buyer could get a reduced loan rate. If the Structured Sale is used, payments to the seller would come from a participating insurance company.
For further information on these strategies, contact CrailHuntly.
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