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"invest in your own debt. Payoff any existing credit card debt, mortgages, etc. that carry interest rates higher than that which can be earned with absolute safety any other place."

Hijacking a thought: FMO's comment reminded me of something that we have been considering of late... carrying back the paper when we sell our current residence...

The $500,000 forgiveness of gain for couples filing jointly will just cover, with a little margin, our gain, so I don't believe we will owe a tax on the profit were we simply to sell for cash. But:

My question is: Has anyone else carried back the paper when selling their residence? Do's and don'ts? Really big regrets? Etc? I assume we'd have a 'regular' collector receiving payments, sending out late notices if needed, etc... and getting a piece of the action for their trouble... I would guess we'd receive ~~5.5% right now, which is quite above anything out there that is really safe...

And we could always make it a 30 year due in 7, or some such, "just in case we want it all sooner, etc"....

I 'know' we'll have a slightly more involved return to file each year as we receive Installment Payments, as defined in IRS Topic 705. Etc.

Thanks. BB.
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