Creative Marketing Intl Corp. and CrailHuntly, LLC, have announced y the formation of a strategic partnership to market nationally CrailHuntly’s proprietary and patent-pending program called the 453 Commercial Loan ProgramTM. This integrated buyer-financing and seller tax-deferral program applies the unique income tax advantages of annuities to facilitate the purchase and sale of commercial real estate and closely held businesses.
The 453 Commercial Loan Program (CLP) is a new, patent-pending program, offered by Creative Marketing to independent agents and financial advisors to help their clients sell highly appreciated assets in a very efficient manner for income taxes and deal financing. The 453 CLP brings together a seller and buyer in conjunction with both participating lenders and annuity carriers, in a way that benefits all parties in the transaction. The seller spreads their tax-liability over an extended term, providing tax deferral and return stability. It can create more favorable financing terms for the buyer, and generate more revenue for each participating lender than can be achieved through a standard commercial loan.
Through its unique structure, the 453 CLP can help mitigate the common problems involving the purchase and sale of highly appreciated assets, by surmounting common seller-financing issues, reduced loan-to-value ratios, and new SBA restrictions concerning loans against goodwill.
As a more flexible alternative to a 1031 exchange and other tax-deferral strategies, it leverages one of the oldest tax deferral opportunities available in the sale of appreciated assets – an installment sale – and works by combining the financing for the buyer with the payment of proceeds to the seller, both managed by the same lending institution.
The amount and frequency of payments are totally flexible and negotiable between buyer and seller. Payments are made at interest, and the seller pays taxes only as each payment is received. Asset-liability matching for the lender is accomplished through the purchase and use of a specially structured annuity.
Creative Marketing and CrailHuntly are now scheduling a series of Webcasts to inform interested parties about the opportunity. For more information, call Vickie Good, Product Information Manager at Creative, (800)992-2642 ext. 280.