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Our patent-pending program providing a powerful solution for individuals selling, buying and financing commercial real estate or businesses.
Informational Menu
You may click on the links below for more information.
What is the 453 Commercial Loan?
The 453 Loan provides a powerful combination that benefits seller, buyer and lender. It enables a simple tax deferral strategy for the seller; provides the opportunity for improved financing terms for the buyer; and creates increased profitability for the lender.
This flexible program can be used as the foundation and facilitator for various transactions as well as improve the marketability of a business or property.
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The Advantages of the 453 Commercial Loan?
Buying and selling a business or property is a major decision. The 453 Loan creates big advantages for all parties at the table.
For Sellers: It's time to capitalize on your success. Your business or investment property is probably one of your most valuable assets, and the sale proceeds are expected to be a major funding source for your retirement or other income needs. So it's very important that you retain the most you can after-tax and assure a desired income stream that is secure and predictable. The 453 Loan is designed to meet these needs by creating tax-deferral, tax deferred growth, and an income stream for years to come.
Take as much as you want at closing and as much as you want over time. It's that simple!
For Buyers: This purchase can be the start of something great and it's important to get the most value for your money. With the 453 Loan, you get the opportunity to obtain more favorable financing.
For Lenders: Increase your profitability with additional, unexpected revenue. Improve liquidity requirements and capture new relationships with additional distribution.
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Who are the Candidates for a 453 Commercial Loan?
The 453 Commercial Loan can accommodate any sale situation where there is sufficient cash available to structure and the Seller does not need all the sale proceeds to reinvest in another business or property.
A Seller who is:
- Retiring or Pursuing other Interests
- Concerned about His/Her Taxes
- Concerned about the Investment of His/Her Sale Proceeds
- Not Interested in a Traditional 1031 Exchange
- Concerned about Asset Protection or Spendthrift Protection
The 453 Loan can benefit any Buyer who is purchasing a business or property from a Seller who fits the criteria stated above.
Buyers must qualify under the guidelines set forth by each lending institution and this program does not change the underwriting requirements of the independent participating lenders.
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Can the 453 Commercial Loan Facilitate a Transaction?
Yes. Aside from the obvious benefits to both Buyer and Seller, the 453 Loan can assist with various situations that might otherwise prevent the closing of the deal. For example:
Bridge the Price Gap: If Buyer and Seller are apart in price the 453 Loan can be used to bring them back together. How? First, the Seller will earn more on the deal than the selling price through the deferral of taxes and tax deferred interest paid. And, the Buyer should save money on the reduced loan rate. This combination creates extra dollars that when considered can bridge the price gap.
Exiting Multiple Owners: If there are multiple owners who each have different ideas or exit strategies on selling, it can sometimes impede the willingness to sell. By using the 453 Loan we can creatively craft a different and separate exit strategy for each owner tailored to individual needs.
Combined with a Like-Kind Exchange: Is finding a 1031 replacement property of equal or greater value proving difficult? Would finding a lesser value property be easier? Or, what if a seller wants to cash out but stay partially invested in commercial real estate? The 453 program creates the ability for sellers to exchange tax free into another property of equal or lesser value than their taxable basis in the old property and then use the 453 program to defer the taxable gain into the future.
Improve the Marketability: The 453 Loan creates the opportunity for a Buyer to get a reduced loan rate making the purchase of a business or property potentially more economical. Therefore, including the 453 Loan as a part of the transaction can make potential Buyers more eager to purchase.
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How does the 453 Commercial Loan Work?
The 453 Loan works by creating a means for the Seller to construct the sale transaction, or only a portion thereof, as an installment sale for the tax advantages, but still keep it a cash transaction from the Buyer.
A Participating Lender is utilized as an intermediary to this transaction and acts as the lender to the Buyer and payment obligor to the Seller.
Sellers receive an income stream from the participating lender and only pay a pro-rata share of tax as each payment is received.
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Contact Us with your questions or to see numeric examples.
Downloadable Information
Please click on the following items to view.
The 453 Commercial Loan is a Trademark, Copyright and Patent Pending program by CrailHuntly LLC.
The 453 Commercial Loan is subject to the terms and conditions of IRC Section 453. Information herein is not intended or written to be used, and cannot be used for the purpose of avoiding any tax penalties.
Neither a Participating Lender nor CrailHuntly is a partner, joint venturer, associate, affiliate, agent or representative of the other party, and is not authorized to speak or act on behalf of the other party. Neither CrailHuntly nor a participating lender makes no promise, recommendation or representation as to the tax or legal consequences of using the 453 Commercial Loan program in any particular transaction. All persons and entities are advised to seek independent tax and legal advice before utilizing the Program.
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Join the conversation as we discuss creative disposition strategies and related tax and estate planning solutions.
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Click Here for information on this powerful solution: Providing the combination of: A Tax Deferral Strategy for Sellers and a Reduced Loan Rate for Buyers all in the same transaction.
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Asset Preserver® - A Single Premium Long-Term Care & Life Insurance Combination
This is one product designed to help protect your assets from the costs of long-term care, and provide a cash legacy to your beneficiaries. Contact us for details.
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