Black Belt Series: Owner Financing

Black Belt Tax Seminars

#2 – Structuring Owner-Financed Deals for Major Tax Savings

1 DVD – 4 hours. Intermediate-to-Advanced level


Owner-financing is a great tool both for acquiring and for selling investment properties. However, the tax consequences of owner financing are very poorly understood. And it’s no wonder, considering how complicated the IRS rules are. For a brief introduction, read my blog post about taxation of owner-financed deals.

If the IRS wanted to, we could have a very simple rule: you collect $1,000 payment – you pay taxes on $1,000. But alas, this is not how it works.

The most dangerous (and little-known!) tax trap has to do with owner-financing flip properties. The IRS will want you to pay taxes on the money you have not yet received! It can create IRS taxes bigger than the down payment you collect. Ouch!

In other words, you may be upside-down and forced to pay taxes out of your pocket instead of out of your business profit! Yes, it is as bad as it sounds. Brutally unfair!

Fortunately, in this class you will learn how to modify the structure of your owner financing deals to minimize your taxes, both for rental properties and for flip properties. In case of flips, you can even alleviate the damage from the “all taxes upfront” trap that I mentioned. Interested? I bet!

Some of the techniques I teach here are proprietary – meaning nobody else uses or teaches them!

I was very impressed with how much detail of the tax code you command. The tips on structuring your offers when selling to minimize your tax bill to Uncle Sam were fantastic. You clearly have a black belt in taxes. Your presentation style kept what could have been a boring subject for some entertaining, and lively. There is no one else who knows more than you in helping keep Uncle Sam’s greedy hands of our pockets. Thank you again for the in-depth class.

Clay Cahoon, founder of Real Acquisitions

Michael’s tax strategy advice has been indispensable to my real estate business. His expert accounting advice on maneuvering through the IRS minefield has helped boost my income while avoiding costly tax pitfalls.

Jeff White



Class topics:Structuring Owner-Financed deals - Michael Plaks

  • 4 types of payments per IRS classification and their taxation
  • increasing deductions for a rental property bought with owner financing
  • calculating taxes on a rental property sold via owner financing
  • restructuring owner financing of a rental for tax reduction
  • calculating taxes on a flip property sold via owner financing
  • avoiding the owner-financed flip tax trap by payment restructuring
  • importance of payment structure when buying flips with owner financing
  • avoiding the owner-financed flip tax trap via “incomplete sale” method
  • tax treatment of notes trading business


I would like to thank Michael for his class on owner financing. You never know everything about the how or the why the IRS does things, but Michael did an excellent job at explaining these. And he did so in a way that was easily understandable. His use of pictures for illustrating the various types, and percentages of taxes levied was much easier to comprehend then words alone would have been. The diagrams and examples clearly showed the “how to” in lowering one’s tax burden lawfully. The cost of the class will surely come back to you 3 or 4 fold.

Mike Palma


Your $397 investment in learning these unique strategies will be repaid several times on your very next owner financing deal! And then it will keep giving. And, may I remind you – nobody else uses or teaches this!

BETTER VALUE: All 3 “Black Belt Taxation” seminars for the price of two: $697 – one seminar FREE!

BEST VALUE: Entire library – all 11 seminars for the price of seven: $2,497 – FOUR seminars FREE!

Choose a bundle or a single DVD


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