The Structured Sale is a unique type of installment sale whereby specific installment payments are secured by an annuity issued by a major, well-known life insurance company.
The Structured Sale is established pursuant to Internal Revenue Code 453, Installment Sales. By separate agreement with the Buyer, a third-party assignment company becomes the substituted obligor for the Buyer and receives the cash not taken by the Seller at closing. Upon receipt of the funds, the assignment company purchases and becomes the owner of the annuity that secures the specified installment sale payment obligation.
Available in all fifty states, the Structured Sale can also be used in a large down payment and a Seller’s Carry Back Note sale.