When selling a property with owner financing, why should you only finance the portion of the purchase price that represents your profit rather than the entire purchase price? A O You don't want to assume all the risk as the lender. BO It's illegal to finance real estate without a lender's license. CO Your lender will require you to pay off your old mortgage loan before transferring title to the buyer. D You'll make more in interest than if you finance the entire purchase price.

When selling a property with owner financing, why should you only finance the portion of the purchase price that represents your profit rather than the entire purchase price? A O You don't want to assume all the risk as the lender. BO It's illegal to finance real estate without a lender's license. CO Your lender will require you to pay off your old mortgage loan before transferring title to the buyer. D You'll make more in interest than if you finance the entire purchase price.

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter14: Property Transactions: Determination Of Gain Or Loss And Basis Considerations

Section: Chapter Questions

Problem 6DQ

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Question

15
When selling a property with owner financing, why should you only finance the portion of the purchase price that represents your profit rather than
the entire purchase price?
A O
You don't want to assume all the risk as the lender.
BO
It's illegal to finance real estate without a lender's license.
Your lender will require you to pay off your old mortgage loan before transferring title to the buyer.
You'll make more in interest than if you finance the entire purchase price.

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