I'm Considering Seller Financing
Spread the tax hit and often improve your net proceeds.
Seller carrybacks are common in Arizona park deals, especially for parks that banks find awkward: fewer than 30 spaces, private wells, septic systems, or heavy park-owned home income.
Carrying paper can raise your total return and spread capital gains across years under installment-sale rules, but it also means you are the lender. Structure matters: down payment, rate, term, amortization, and personal guaranty.
What matters most in Arizona
- Larger down payments and shorter terms reduce your risk considerably.
- Record a first-position deed of trust and require proof of insurance and tax payment.
- Talk to your CPA about installment-sale treatment before agreeing to terms.
Common questions
- Why would I carry financing on my park?
- A carryback can raise total return and spread capital gains across years under installment-sale rules, and it makes parks that banks find awkward much easier to sell.
- How do I protect myself as the lender?
- Take a meaningful down payment, keep the term shorter, record a first-position deed of trust, and require proof of insurance and property tax payment.
- Which parks most often use seller financing in Arizona?
- Parks under about 30 spaces, parks on private wells or septic, and parks with heavy park-owned home income — the same profile banks tend to avoid.
"Don't have clean books? Don't let that stop you. Start with what you know."
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