Benefits of Collateralized Installment Sales

(1) Benefits of Tax Deferral

(2) Non-tax Benefits

• Easier deal-making: Seller and the ultimate buyer achieve each one’s desired objectives, even when inconsistent
• Total proceeds invested with a bank or financial services firm which the seller approves or selects
• Improved cash flow, as low-producing assets are replaced with portfolio income stream
• Freedom from management responsibilites and management risk, including the risk of having to undertake collection proceedings
• Investment diversification
• Facilitated estate and retirement planning
• Easy portfolio re-allocation
• Resources to service or reduce other debt
• Cash processing by a collateral holder which the seller approves or selects
• Freedom from concern about the buyer’s performance or credit
• Freedom of timing for the disposition, without the limitations, loss of bargaining power and implicit price premiums that go with tax-deferred exchanges
• A high level of security for the invested sales proceeds, through the use of a “vault” company which holds ownership of the invested sales proceeds for our seller’s benefit
• More freedom of action when our seller is only one of multiple owners of the asset to be sold
• Easier resolution of price-allocation issues between our seller and the ultimate buyer
• Refinancing assistance on the sale of encumbered assets