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Installment Sale

A sale to Flexible in which you get paid in installments rather than all cash upfront. Obtain a higher sale price, defer and reduce taxes, and like a bank, earn passive monthly interest income. A popular alternative to a 1031 exchange or Deferred Sales Trust as a way to remove fees, 1031 exchange risk, and ownership responsibilities.

How our Installment Sale works
  • 1

    Sell to Flexible

    Instead of receiving 100% of your cash at closing, you choose our down payment (cash to you at closing) and lend a percentage of the sale price to Flexible just like a bank.

  • 2

    Receive passive cash flow

    As the lender, you determine the key payment terms, including our down payment and the duration of your loan to Flexible.

  • 3

    Earn income until the loan is paid off

    Just like a bank, you receive principal and interest income until the end of the loan term when your loan to Flexible is repaid in full by Flexible.

How am I safe? 

Your new loan is secured by the property, so in the unlikely event of default, you can foreclose to take back ownership. Not only does Flexible accrue penalties, but the down payment, property improvements, and all payments made up until that point are yours to keep.

Benefits and Tradeoffs
  • Higher sale price and earning potential- Depending on your terms of our offer, Flexible can offer a higher price than a standard market sale and the interest income can further increase your earnings.

  • Passive income- Receive monthly cash flow without the hassles and expenses of property ownership.

  • Tax perks- Reduce taxes by spreading your gain over multiple years, which can put you in a lower tax bracket. Consider an interest-only loan to defer taxes and earn interest-income pre-tax.

  • Partial sale proceeds- You do not receive 100% of your sale proceeds at closing

  • Possibility of lower earnings- You may be able to earn a higher return by selling, paying taxes, and reinvesting elsewhere

  • Risk- All investments have risk. By taking payments over time, you risk default or late payments.

Installment Sale Example

You sell your property to Flexible for $1,000,000. At closing, you receive our $100,000 down payment, and the remaining $900,000 of your equity converts to a loan from you to Flexible with a term of 10 years at 5% interest-only

After closing

You choose to receive interest-only payments of $3,750 per month, the annual interest owed per year divided into 12 monthly payments, for all 10 years. Flexible spends $250,000 to improve the property, and after improvements, rents the property out to quality sub-tenants


At the end of your installment sale period, you receive a lump sum payment equal to the balance of $900,000, ending the lender-borrower relationship and your involvement with the property. Your total cash received from the sale is $1,450,000 which includes $1,000,000 of sale proceeds and $450,000 of interest income.

This example is simplified to exclude details that vary by owner and transaction, including the impact of taxes, tax savings, and miscellaneous third-party transaction costs.

Perfecting your Installment Sale terms

Every Flexible offer is custom-built to achieve owners’ goals. For an Installment Sale, here are the most important items to consider:

  • Down payment

    You choose the amount of cash you receive at closing. The lower our down payment, the higher Flexible's loan balance which increases your loan income. A higher down payment may increase your upfront tax bill.

  • Monthly income

    While this is partially determined by the purchase and down payment, we can customize the amount you receive every month by fine-tuning how much principal and interest we pay. Higher income usually means higher taxes owed. If you are seeking the maximum interest rate we can offer, ask us for a long-term fixed-rate, interest-only loan.

  • Loan payoff date

    When your loan is repaid in full. The typical Installment Sale term is between 5 and 15 years.

  • Security preference

    We can share ways to adjust your loan in order to increase potential earnings.

Most owners…

Most owners who choose an Installment Sale strike a balance between monthly income and total earnings after tax so they choose a down payment of 10% to 15% of the sale price. 

When you request an offer, we’ll share options so you can choose your desired combination of offer features and make an informed choice. We can include preapproval to make changes after reaching an agreement so you have flexibility as the future unfolds.

See if our Installment Sale is right for you

No commitments required.
Frequently asked questions
  • We’ll work with you ahead of time to ensure you’re comfortable with the outcome, which can be, but is not limited to, any of the following: transferring the loan to a new buyer/borrower, repayment, or keeping the loan intact and replacing the underlying security from your sold property to something else, possibly increasing the interest rate Flexible pays you. If an early payoff triggers negative tax consequences, we can build in a prepayment penalty.

  • A mortgage or deed of trust is a legal document that gives you, the loan owner, the right to sell the property through the foreclosure process if the borrower fails to make payments and meet the terms stipulated in the loan agreement.

  • Our offers are customized to maximize the collective ownership group’s satisfaction. Flexible will ensure each co-owner receives the terms they want, whether it’s cashing out, remaining an owner, or both. You tell us if you want us to work with a single contact, the group, or individually with each co-owner.

  • In most cases, our down payment will be used to pay off the existing loan. We’ll determine if your loan can be paid off without penalty and, if the rate is below market, whether it can be assumed. If we can keep a below-market rate loan in place, we may be able to increase our offer price.

  • We’ll work with you to coordinate our onsite inspections and collect property information as part of our due diligence. If certain materials are not available or easily accessible, our team can help.

Love Your Offer Guarantee™

Regret hurts.

Typical transactions prohibit owners from making changes or canceling. With Flexible, you get unlimited offer adjustments and seven days after accepting our offer to cancel.

No questions asked.

Why owners choose Flexible
Better experience, better outcome
  • Skip months of hassles.
  • Save hundreds of thousands: no commissions or repairs.
  • Explore all options—no commitment required.
  • Get a same-day offer that achieves your goals.
  • Get transparent and competitive pricing.
  • Secure fast closing certainty
  • Close on your timeline.
Featured story
Multifamily Owners Discover the Power of the Installment Sale
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