When IS the right time to sell my mortgage business?

When, exactly, is the right time to sell my company?

Let’s take an example.

You have a $6 billion servicing portfolio. You understand that you can get telephone numbers if you sell. If you hold because of the low interest rates, your income compensates for any slowdown in business. If you sell, of course, you’ll be paying full taxes.

The benefits to selling now?

  1. Helps liquidly
  2. Infuses large amount of cash into company
  3. If you are a sub S corporation you can take some of your capital out tax free

If you sell your company and you can get the street value of the servicing, you can use the capital gains (20%) rate.

So when’s the right time to sell?  If a sale can bring you your net worth and you can remain on with the copmany,  you can put your capital under glass and stay busy until the next big thing (or retirement) summons you. If you do nothing…well, remember:  the trees never grow through the clouds!


Leave a Comment