The Creative Financing Podcast
Episodes
Monday Jun 28, 2021
Ep 164 The Big 5- How To Make Multiple Offers
Monday Jun 28, 2021
Monday Jun 28, 2021
How to make multiple offers- This is really more of a mindset than anything else once you understand the basics and foundation of creative financing. Try structuring offers based on 3 or 4 different exit strategies. That will help you create different types of offers. Offers you can make every time are Cash, short term finance, long term financing, minimum 3yrs or 5yrs. Try to gauge down payment and terms they are open to 358K offer 5% down 10% down.
Longer Term Offer- 5 to 7 yrs. This is more for an Owner Occupant or a Landlord if you are not holding the property yourself. Always ask; How long would you like to continue to make money on your property. The Seller must make significantly more if they are holding a note long term because you really need to incentivize them. Offer a higher purchase price, downpayment, and/or interest rate, and show the Seller what they will net or gross at the end of the term. You want the longer term balloon payment to always be less than the shorter term balloon payment because you need more principal paydown over that time.
Subordination- This is where the Seller takes their equity in second position. We borrow the down payment in first position. Always consider what your payment will be on your first position note. You still need the payment to work for you. Plus you still need to offer the seller a note and monthly payment. These are longer term deals because. Offer 1. 358 Offer 2 350. Offer 3. 350 w/100K down. 250K in second position. 2.5% int. 900/month for 48months. 19k paydown.
Wrap Around Mortgage or All Inclusive Trust Deed- If there is debt on the property, what do you do? It really depends on what that debt is and what the monthly payment is. If you can make a cash offer then you can make a short term financing strategy 6-12months, offer a down payment and offer to make the monthly payment. Ask if they are willing to wait on their equity, this strategy works if you can wholesale to a landlord or hold it longer term. Or if you can use it as an AirBnB or rent rooms out individually to create more cash flow. Break it into its component parts, 1 is debt, 2 is the Seller’s equity. Another option, You can offer to pay interest only payments on the Seller’s equity to keep you payment lower especially if the loan is further along in amortization to get more principal paydown.
Hope you enjoy, And to get special access to a step by step video on how to structure creative financing offers, text CFP to our hotline at 877-409-8090 or click HERE.
Monday Jun 21, 2021
Ep 163 The Big 5- How To Make Multiple Offers
Monday Jun 21, 2021
Monday Jun 21, 2021
How to make multiple offers- This is really more of a mindset than anything else once you understand the basics and foundation of creative financing. Try structuring offers based on 3 or 4 different exit strategies. That will help you create different types of offers. Offers you can make every time are Cash, short term finance, long term financing, minimum 3yrs or 5yrs. Try to gauge down payment and terms they are open to 358K offer 5% down 10% down.
Longer Term Offer- 5 to 7 yrs. This is more for an Owner Occupant or a Landlord if you are not holding the property yourself. Always ask; How long would you like to continue to make money on your property. The Seller must make significantly more if they are holding a note long term because you really need to incentivize them. Offer a higher purchase price, downpayment, and/or interest rate, and show the Seller what they will net or gross at the end of the term. You want the longer term balloon payment to always be less than the shorter term balloon payment because you need more principal paydown over that time.
Subordination- This is where the Seller takes their equity in second position. We borrow the down payment in first position. Always consider what your payment will be on your first position note. You still need the payment to work for you. Plus you still need to offer the seller a note and monthly payment. These are longer term deals because. Offer 1. 358 Offer 2 350. Offer 3. 350 w/100K down. 250K in second position. 2.5% int. 900/month for 48months. 19k paydown.
Wrap Around Mortgage or All Inclusive Trust Deed- If there is debt on the property, what do you do? It really depends on what that debt is and what the monthly payment is. If you can make a cash offer then you can make a short term financing strategy 6-12months, offer a down payment and offer to make the monthly payment. Ask if they are willing to wait on their equity, this strategy works if you can wholesale to a landlord or hold it longer term. Or if you can use it as an AirBnB or rent rooms out individually to create more cash flow. Break it into its component parts, 1 is debt, 2 is the Seller’s equity. Another option, You can offer to pay interest only payments on the Seller’s equity to keep you payment lower especially if the loan is further along in amortization to get more principal paydown.
Hope you enjoy, And to get special access to a step by step video on how to structure creative financing offers, text CFP to our hotline at 877-409-8090 or click HERE.
Monday Jun 14, 2021
Ep 162 The Big 5- How To Make Multiple Offers
Monday Jun 14, 2021
Monday Jun 14, 2021
How to make multiple offers- This is really more of a mindset than anything else once you understand the basics and foundation of creative financing. Try structuring offers based on 3 or 4 different exit strategies. That will help you create different types of offers. Offers you can make every time are Cash, short term finance, long term financing, minimum 3yrs or 5yrs. Try to gauge down payment and terms they are open to 358K offer 5% down 10% down.
Longer Term Offer- 5 to 7 yrs. This is more for an Owner Occupant or a Landlord if you are not holding the property yourself. Always ask; How long would you like to continue to make money on your property. The Seller must make significantly more if they are holding a note long term because you really need to incentivize them. Offer a higher purchase price, downpayment, and/or interest rate, and show the Seller what they will net or gross at the end of the term. You want the longer term balloon payment to always be less than the shorter term balloon payment because you need more principal paydown over that time.
Subordination- This is where the Seller takes their equity in second position. We borrow the down payment in first position. Always consider what your payment will be on your first position note. You still need the payment to work for you. Plus you still need to offer the seller a note and monthly payment. These are longer term deals because. Offer 1. 358 Offer 2 350. Offer 3. 350 w/100K down. 250K in second position. 2.5% int. 900/month for 48months. 19k paydown.
Wrap Around Mortgage or All Inclusive Trust Deed- If there is debt on the property, what do you do? It really depends on what that debt is and what the monthly payment is. If you can make a cash offer then you can make a short term financing strategy 6-12months, offer a down payment and offer to make the monthly payment. Ask if they are willing to wait on their equity, this strategy works if you can wholesale to a landlord or hold it longer term. Or if you can use it as an AirBnB or rent rooms out individually to create more cash flow. Break it into its component parts, 1 is debt, 2 is the Seller’s equity. Another option, You can offer to pay interest only payments on the Seller’s equity to keep you payment lower especially if the loan is further along in amortization to get more principal paydown.
Hope you enjoy, And to get special access to a step by step video on how to structure creative financing offers, text CFP to our hotline at 877-409-8090 or click HERE.
Monday Jun 07, 2021
Ep 161 pt5 The Big 5 How To's- Continuing On Down Payments
Monday Jun 07, 2021
Monday Jun 07, 2021
How to use down payment- We always talk about getting in light. What does that mean… well it depends on the property condition and price point. But most deals don’t work if your down payment is too high. We like to get in around 10% or less. A 20% down payment doesn't work in most cases if you were selling the property to an Owner Occupant or wholesaling it to a landlord because they can’t offer more than 10-20% down. So start with the end in mind, meaning what is your exit strategy? In some cases there is a way to offer more. If you are retailing it and can take over payments or structure financing with a reasonable monthly payment, then holding it short term and selling it outright in a couple months makes sense doesn't it? Or, also you can structure a seller subordination.
Hope you enjoy, And to get special access to a step by step video on how to structure creative financing offers, text CFP to our hotline at 877-409-8090 or click HERE.