VTB Cover Letter

[MarkTorgerson]

I am in the process of taking a run at a large commercial building. The seller is not very experienced when it comes to VTB`s and is a little bit nervous. It is my job to educate him. I am going to write a cover letter with an offer. Within that cover letter will be a section of the advantages of VTB`s and why it would work for him. A few of the points would be.

• Staggered capital gains (less taxes)
• Secured interest
• Quality of life - as it will be a headache goneSteady monthly income stream especially in a downturn marketHe gets his price (my terms).

I am curious as to other points anyone has. I am also curious if anyone else has written a similar letter and if they would be willing to share.

Thanks

 

[Thomas Beyer]

QUOTE (MarkTorgerson @ Mar 30 2009, 02:29 PM) I am in the process of taking a run at a large commercial building. The seller is not very experienced when it comes to VTB`s and is a little bit nervous. It is my job to educate him. I am going to write a cover letter with an offer. Within that cover letter will be a section of the advantages of VTB`s and why it would work for him. A few of the points would be.

• Staggered capital gains (less taxes)
• Secured interest
• Quality of life - as it will be a headache goneSteady monthly income stream especially in a downturn marketHe gets his price (my terms).

I am curious as to other points anyone has. I am also curious if anyone else has written a similar letter and if they would be willing to share.

Thanks
1st things 1st: ensure you mention that his VTB is SECURE .. i.e. address the most common concern: you don`t pay him ! Tell him about you and your net worth and your plan for the building ..

fuzzies are key ! did you meet him ? that would help !

a VTB (2nd I presume) is very high risk on a commercial building if given to a person that does not pay .. as taking a property back with a 1st mortgage is real hard, real expensive and a royal pain !

tell him how to pay him back in 2 or 4 or 5 years: a sale or a condo conversion or a re-fi ?

drop me an e-mail .. I`ll send 2 VTB cover letters I have used ..

 

[GaryMcGowan]

Another point that worked for us in selling the idea of a VTB. We where able to educate the seller about deferring the capital gain tax when holding a VTB. This was on a multi family building I presume it would the same with a commercial building regarding capitol gain.

gm

 

[MarkTorgerson]

QUOTE (thomasbeyer2000 @ Mar 30 2009, 04:58 PM) 1st things 1st: ensure you mention that his VTB is SECURE .. i.e. address the most common concern: you don`t pay him ! Tell him about you and your net worth and your plan for the building ..

fuzzies are key ! did you meet him ? that would help !

a VTB (2nd I presume) is very high risk on a commercial building if given to a person that does not pay .. as taking a property back with a 1st mortgage is real hard, real expensive and a royal pain !

tell him how to pay him back in 2 or 4 or 5 years: a sale or a condo conversion or a re-fi ?

drop me an e-mail .. I`ll send 2 VTB cover letters I have used ..

Great points. Thank you.
In this case I will be assuming a small first (if possible) and the 2nd will be quite large.

Thomas, I will send you an e-mail for the VTB example cover letters.

Thanks