Seller Carry Back Note Combined with a 1031 Exchange

You may be requested by real estate buyers from time-to-time to assist them in the acquisition of your real property ("relinquished property") by helping them with the financing.

This means they are asking you to carry back an installment note or promissory note, which is often referred to as "Seller Financing," "Seller Carry Back Financing," or a "Seller Carry Back Note."

Seller carry back promissory notes can be very powerful sales tools when negotiating and structuring real estate transactions, especially in rising interest rate environments, distressed real estate markets and tight credit markets.

This type of financing can also be a very effective income tax planning and/or estate tax planning strategy for you if you do not want to 1031 Exchange into other like-kind replacement properties.

However, seller carry back financing can complicate a 1031 exchange transaction if you are planning on selling investment property and then 1031 exchanging into other like-kind replacement property.

You can learn more about this strategy and the related complications at http://www.exeter1031.com/seller_carry_back_financing.aspx.