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?Don?t Fall for Schemers? Lines? - Advice to a real estate investor
2007-05-02 14:39:00
Us as real estate investors really need to get back to the basics and see real estate investing for what it is… and more importantly… WHAT IT IS NOT. I was recently reading the RealEstate Journal and found a great article written by David Crook. This article isn’t the same ol’ “doom and ...
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May 2007 Housing Market Key Indicators - What?s happening now
2007-05-02 05:38:00
As you know, it is getting difficult to keep up with all of the changes in the housing market and the economy. So… to help keep you up on the latest real estate and economic indicators… here you go… Courtesy of Hanley Wood Mark et Intelligence www.hanleywood.com/hwmi Housing Hurting, Stocks Surging While the housing sector struggles to ...
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Is the Structured Sale legal?? - Yes, and here?s why?
2007-03-16 23:57:00
We have spoken to several sellers and professionals advisors lately who have mistakenly lumped the Structure d Sale into the category that the Private Annuity Trust now falls into… … NO LONGER VALID BY THE IRS AS A CAPITAL GAINS TAX DEFERRAL TOOL…. Well, before this completely wrong assertion causes sellers and professional advisors to look away from ...
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So, what is this ?3rd party assignment company? for a structured sale?
2007-03-10 02:31:02
So, just what is the 3rd party assignment company and why do we need them?  The 3rd party assignment company (from here on 3rd party) for a structured sale (Ensured Installment Sale) is really what makes the whole thing tick.  Basically, the 3rd party is what turns a traditional installment sale into a structured sale.  Here’s a simplified process flow showing where the 3rd party fits in.  Buyer sends funds to escrow Escrow distributes funds designated to structured sale to the 3rd party 3rd party purchases annuity from Allstate (or Prudential) Allstate (or Prudential) sends guaranteed payments to seller The key to the 3rd party is that it is based “offshore” in Barbados.  Now… don’t let this scare you.  I know the term “offshore” has been used to describe some less than honest circumstances; however, the “offshore” 3rd party is backed by a Fortune 100 life insurance company such as Allstate or Prudential.  Allstate’s 3rd...
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Calculating the cost basis, deferred gain, and interest income of a Structu
2007-03-01 14:24:03
Many people have been asking us how to calculate the cost basis as well as the amount of deferred gain and interest income in each structured sale payment. So… I thought that I would make a post here to give everyone that information at once. Calc ulating these are pretty simple, but not as straight forward as you might think.  Here we go: First off we want to find out what your true ”value” of the property/business is. Simply take the sales price and subtract any selling expenses you will incur.  Now you have your value that will be used to calculate the gain later on. Next, we need to calculate the net adjusted cost basis.  This is basically what you paid for the property plus any improvements you have made to the property minus depreciation you have taken over the years.  Have you added a garage?  Placed a new asphalt parking lot? etc. This will give you your basis. To calculate the total gain simply subtract the net adjusted cost basis from the value. Calculati...
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When is it too late to use an Ensured Installment Sale (structured sale)?
2007-02-21 14:17:01
I’ve been speaking to many property sellers recently; however, a conversation with one in particular made me want to write this post.  The seller I was speaking to is in his 70’s and is selling his fractional ownership in several multi-unit properties that he has held for 20 years.  He actually already has a buyer lined up, which has signed a purchase and sale agreement.  So… is it too late to use the EIS?  The answer is NO!  As long as the sale has not yet happened and money has not changed hands the EIS can still be used.  This particular seller wants to use the EIS to help fund his retirement and pay for his wifes medical bills.  He doesn’t want to mess around with finding a good investment broker who can invest his money for him… he simply wants a safe and secure stream of income that will be around for as long as he will.  So, I’ll be meeting with this seller next week and helping him restructure the P&S agreement to fit in the EIS and g...
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What?s the Difference???
2007-02-18 14:15:01
What’s the difference between an Ensured Installment Sale (EIS) and a Private Annuity Trust (PAT)? Well, the short answer is: the PAT no longer works, and the EIS does.  But why? Well the main difference, is that the PAT fails because ownership in one asset (real estate, business) is ultimately being exchanged for ownership of another asset (an annuity policy). With the EIS, the seller of property or a business is receiving ONLY the promise of the future annuity payments, not ownership of the annuity itself.  However, the promise of the annuity payments is provided by a MAJOR U.S. Life Insurance Company, who issues the annuity.  So who owns the annuity policy? An international third-party assignee company assumes the liability of the buyer, to the seller, created in the installment sale agreement between those two parties.  The MAJOR U.S. Life Insurance Companies that provide the annuities that are used to fund these transactions, also issue Letters of Guarantee backing the fu...
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Capital gains tax calculator
2007-02-18 14:15:01
I just wanted to let you know that we just put up a capital gains tax calculator on our website.  You can find the capital gains tax calculator at: http://www.structuredsalespro.com/capital -gains-tax-calculator.html Go check it out and tell us how you like it.  We’ve had several visitors ask us about calculating capital gains so we decided to put up an easy to use calculator.  On another note… there have been a lot of people asking how to calculate the return on a Structured Sale (Ensured Installment Sale).  It is extremely simple to do; however, it is unique to each situation.  Later this week I’ll show you examples of returns that can be expected and how it is calculated.  If you have a specific situation that you would like for us to analyze, please give me a call at 1-800-666-5584.
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The Democrats and Capital Gains Tax
2007-02-01 14:06:01
One concern I have been hearing lately is about how the Demo crats will hike the capital gains tax the first chance they get.  Everyone knows that the nations defecit is growing and the current administration has rolled back taxes (including capital gains) in hopes of spurring growth in the economy.  Well, I can’t say if this strategy has worked or not, but there are some relative certainties with the future of the capital gains tax.  I found a good article at CNNMoney.com that gives a bit of insight to what may happen in the next 3-5 years concerning the capital gains tax. Bush signed off on the capital gains tax cut some years back and the cut isn’t set to expire until the end of 2010.  There have been several attempts to raise the capital gains tax in recent years but the Bush administration has made it known that any attempt to do so will be vetoed so fast your head will spin.  To throw a cog in the wheel, with the Democrat ic takeover of the house and congress it look...
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Welcome to our blog!
2007-01-29 02:03:02
As you may have seen lately Settlement Professionals Inc. has been doing some changes with our online presence.  We just updated our main site:  www.settlepro.com to better reflect our position in the structured settlement industry as the nations top Plaintiff Only Settlement Planner.  Take a look at it and let me know what you think. Also, we just launched our Ensured Installment Sale (our name for the Structured Sale) website and are already seeing great results.  We are still tweaking it a bit, but it is up and running.  And last but not least, we just added our Structured Sale blog where you will find the most up to date information on the Structured Sale and tax deferral strategies.  We will try to post in it as often as possible, hopefully every other day at least, but you know how that goes.  Anyway, check back here often and learn about the Structured Sale, its progress in the industry, our innovations, my random ramblings, and anything else we want to post.  We are working ...
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2007?the year of the Structured Sale?
2007-01-29 02:03:02
Will 2007 be the year of the Structure d Sale ?  It’s hard to tell, but I do think that it will become an increasingly popular capital gains tax deferral tool.  2007 may be the year that the Structured Sale breaks out of the “its too new” syndrome and into the more mainstream consciousness of financial and real estate professionals nationwide.  Just in the last 2 months the internet craze (well…I guess I wouldn’t quite call it a craze) for the term “Structured Sale” has taken hold.  As late as October of 2006 you could type in “Structured Sale” or “Structured Sales” and get a bunch of results that had nothing to do with capital gains at all.  Now… the first few pages are filled with the structured annuity heavy hitters websites.  More and more people are searching specifically for the term “Structured Sale”, which tells me that word is getting out and people are realizing how great of a sales method it...
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The decision process: Choosing your sales method - Is the Structured Sale r
2007-01-29 02:03:02
Just like any big decision in your life, choosing how you sell your business or real estate should be a well thought out process.  Afterall, most of your retirement may be wrapped up in your business or investment property.  So, how do you decide which sales method is the best choice for you? First off, you need to determine what your goals are with the sale of your appreciated asset.  Are you selling so you have cash to place in a new investment? Are you selling because you want to retire and will use the sales proceeds to help fund retirement? Are you selling so you can “trade up” and roll your equity into another investment property? Are you selling to pay off a debt? Are you selling because you inherited a business/property and have no desire to run it yourself?  Are you selling because you don’t want the hassle of managing a rental property or business but want to continue having monthly cashflow? Etc……. you get the point.. You need to really dec...
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Part 2: The Decision Process - Is the Structured Sale Right For You?
2007-01-29 02:03:02
Here’s part 2.  So, you have decided that you are selling your business or real estate.  It is now time to decide which sales and tax deferral method you should use to maximize your benefits and minimize your capital gains taxes.  Let’s go over some of the more popular sales methods out there.  All cash sale - This is pretty self explanatory.  You sell for all cash to a buyer who either has financing or cash to bring to the deal.  You will be hit with capital gains tax in the year of the sale; however, you will have all of your money right now (minus your 15% capital gains of course).  Costs the seller no extra cash to use. 1031 Exchange - This method is very popular and an excellent tax deferral and wealth building tool.  Here are the cliff notes if you don’t know how a 1031 works.  You sell your investment property and place the proceeds in an escrow account until you find a “like-kind” investment property to roll the cash into.  However, there are s...
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Are there any additional expenses in using an Ensured Installment Sale (Str
2007-01-29 02:03:02
Probably no more so than a regular installment sale, or any other type of real estate sale transaction.  The main expenses remain brokerage commissions and fees, and legal advice and accounting.  SPI is paid solely by the insurance company chosen to provide the placement of the annuity contract.  And those fees are already factored in to any proposal or illustration you receive from us. If you decide that this strategy is not for you, there is no bill for just talking to us or having us work up some illustrations for you.  We are happy to help you explore whether this strategy makes sense for YOU. 
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Clearing up a bit of confusion with the Structured Sale
2007-01-29 02:03:02
I recently came across a company who offers capital gains tax deferral strategies to sellers of appreciated assets.  This particular company used to offer the now defunct Private Annuity Trust and is offering something else instead.  (You will find their google ads and websites all over the net… you have probably seen them before but I choose not to mention names because that is not my style) Anyhow, I signed up for their “Free Report” and have been receiving their “educational” email over the past week or two.  In the latest email she describes the Structured Sale , but I noticed that there are a few pretty big errors that need clearing up so you know the truth about the Structured Sale. The first error she states: “…the only Assignment Companies offering structured sales are owned by large insurance companies.”  I know, this is splitting hairs, but the statement is wrong.  The Assignment Companies are not “owned” by any in...
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