Owner Financing vs Selling: How to Decide

Hey Perry. So you just purchased and moved

into a new home. You'll be listing one that I moved out of.

Would like to know if I should owner finance to give me some

monthly cash flow. As long as the numbers work, those that

works out.

So the the home is we're probably is it

a primary residence?

It's not anymore. I'm in the prime. I moved into my

primary residence. Just painted the former home and got it

ready. We're cleaning tomorrow. We're going to list it probably

this week at 79 nine. It's a mobile home, two bedroom, one

bath. I'm probably going to take a hit on it just because of the

amount of work I put in it. But so I was just trying to follow

your everything I've read about you know generating cash flow,

then getting starting that process, getting it out of the

LLC since it's real estate, then the trust. You have any

LLCs right now, or any? I

don't. No.

Well, and the problem is you're in California,

so I mean, it's a math equation again. I'd have our tax teams

look at it. If you can own a finance and get monthly cash

flow, that might be a way. The other way would be if you sell

it outright, get out of California with that money,

because Newsom's not going to do anything better. He's got exit

tax and all sorts of you know more problems coming. Is that

a 1039? Just like you suggested before, that's

the 1031. And since this was your primary, if

you rent it and lease to own it for a while, then you could 1031

out. So again, I got can't rent it

out. It's a mobile home in a park, and they don't allow

that.

Then sell it, and then take the proceeds. But

before you do that, let's let the tax teams review different

options on how you could get out of it and move the money, and

like you said, to I think one of the other you know people that

were here is the folks in Virginia, right? Andre and

Angela, I said the same thing. Like you're not going to get as

much in California as you're going to get in Kansas with that

same money, and then can cash flow better? So you're going to

get introduced to a whole variety of folks from Texas to

Oklahoma, Kansas, Missouri, Idaho, Ohio. I mean, there's a

lot of places you can get some great cash flow real estate, or

just invest in a different asset class. So that's a decision

you'll make as you kind of come forward and and get into it, but

either way, I mean, just how you make money in California. I

mean, we got to come up with a different operating company.

Like, so the other side for you is going to be, what do you want

to do to make more money, where we can put you into a Nevada

company, and then that Nevada company will offset against your

California income, and we do that. I mean, I did to myself. I

lived in California for 13 years, and I always I've had

Nevada residents, and and then I end up buying a bunch of rent,

you know, real estate rentals. And I actually then Luke moved,

and then just didn't go home one day. I stayed and ski. I go ski.

My son was like, "Mom, here aren't you going to put me back

in kindergarten? I said, yeah, we'll worry about that next

year. Let's just go ski all season and move the whole office

up from Marin County. So it depends what you really want. I

mean, we're a very holistic. That's what's called the

integration. We're very holistic approach from tax to corporate

structure. That cast. I mean, the only way you're going to

reduce your taxes in California is have a cross-border

relationship to a business in Nevada, which we're gonna have

to make that up. I mean, I don't know what you want to do, so the

investment here with the houses is one thing, and then then the

question is, then what's next? Like, where are you gonna go

then? Which is, what do you do to make more money, and then put

that money to work outside of California, ideally, because you

just can't buy a lot there, and even if you can get a good buy,

you're still going to pay over taxes. You get killed in taxes.

I get killed

everything. So let me see if I heard you right. Best

probably not to own a finance, and instead go ahead and just

if the numbers work. I mean, but if you can

just get well,

what would that be? I mean, I mean, one of the things

we looked at is you know if we're offering let's say $80,000

at 20% down, 6% interest with amateurization over 30 years and

maybe a balloon payment at five, that was one of the things

or earlier,

or my realtor suggested

if well yeah but if they can't qualify for a

house I mean, you're going to end up getting the house back

and having to do this again and again and again. So and things

are

decreasing here. The price, all the prices are

dropping everywhere on Zillow.

Yeah, and I so given that too, and given

interest rates where they are, I mean, personally, I'd probably

get get out and restart in a new state with, and then let's get a

new business up and get some new income. So you're making more

money, and then you're out of the California market. So, you

know, on the one property, and everything else is owned out of

that state.

Okay.

All right. Sandy talking

tomorrow. I changed it, Sandy, to 10 a.m. I got.

I saw. Yeah, she's ready to roll, and she's a

bookkeeper. Oh well, then you got business forever. We

actually just did a certification on how to bookkeep

Millionaire Maker Way, so then you get referrals from the big

table.

Yeah, I don't want to do booking. I tell you that

right now, it's

pretty easy. All right,

yeah, it's not easy. It's it is, but it's I will

manage people doing bookkeeping. I will do. I already

have that person. She got here first, and

she. Yeah,

and I do. We'll figure something out. We'll figure

something out. You're going to

figure something out. Yeah, lady. All

right. So let me know if you have any questions, and I will

be back with you.

Thank you, ma'am. Appreciate it.

Thank you.

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