The Creative Financing Podcast
Episodes
Monday Aug 30, 2021
Ep 174 How Our Last Deal Transpired And How To Renegotiate
Monday Aug 30, 2021
Monday Aug 30, 2021
On this episode we talk about the last deal we created offers on. What happened and the lessons learned. The Seller initially accepted the Seller Subordination offer but was confused on the down payment so Jeff had to re-negotiate. Jeff explains why sometimes, it’s not in your best interest to make more offers because the Seller picks and chooses what purchase price they want, with what down payment. Listen closely to find out what happened and how Jeff was still able to get the deal done. And more importantly the lessons learned. Here is the summary of offers-
4 offers.
-Cash $162,220.
-Short term $173,000pp w/20K down. Make the existing payment for 7months.
-All inclusive 200K w/ 8K hybrid interest 2.5% interest. 900/month payment 36 months. $173,327 balloon.
-Seller subordination of $197,000pp, 90K down, owe 107K to Seller, payments 450/m principle only for 4 yrs. Balloon 85,4000. 7% interest only on first mortgage, payment to be 525/month. Cash flow estimated to be 313/month.
Monday Aug 23, 2021
Ep 172 pt3. Jonathen's Turn- Deal Structuring Straight From The CRM.
Monday Aug 23, 2021
Monday Aug 23, 2021
Deal structuring straight from the CRM- Jonathon’s turn.
Now it’s Jonathen’s turn to structure the offers… In this series we pull leads straight from Jeff’s CRM for some deal structuring. If you are generating leads and want to utilize creative financing then you’ll need to go through the same process as we are in this series. Here are the details of the property and notes on offer structures...
Deal #1
Property info- Wyoming SFH, 3 bed, 2 bath, 1 car garage, 2200 sqft, .23 acre, built in 1963. Occupied by the owner. 74K owed on mortgage. 736 piti/monthly payment. Owner wants to move right away to join husband in Texas who has taken a new job opportunity. Minor repairs needed. Taxes 1421/yr.
Before we create offers we must- Pull comps, check taxes, and pull Rental comps. Sources: Zillow, County Assessor, Biggerpockets and Rentometer.
Worth 260K-270K by realtor opinion. Asking 170-175K. To be structured as All inclusive trust deed/wrap around mortgage for existing loan terms plus new note.
Offers
Cash 160K
Short term finance offer 175K. 15K 1,000. At 4% 6months 157,176. Plus taxes and insurance.
Long term 4 yr. 190K 10K 2.5% ,1000/month Balloon to Seller $148,483. Sell to an owner occ for 275K with 3K. 228,740 Difference $80,257 + 20K =110,257 13,344 cash flow over 4yrs= 13,344+110,257= $113,601. Seller grosses 206,483 over 4yrs.
Subordination 210K 80K down. 3yrs Seller financed 130K. 533.33/ month int only to our lender. 500/month principle only to the seller. Seller balloon 112,000. Our Buyer’s Ballon $233,098= 41,098 difference plus 8,820 cash flow= 49,918 plus 30K down from our buyer = 79,918 profit.
Hope you enjoy!
Monday Aug 16, 2021
Ep 171 pt2. Jonathen's Turn- Deal Structuring Straight From The CRM.
Monday Aug 16, 2021
Monday Aug 16, 2021
Deal structuring straight from the CRM- Jonathon’s turn.
Now it’s Jonathen’s turn to structure the offers… In this series we pull leads straight from Jeff’s CRM for some deal structuring. If you are generating leads and want to utilize creative financing then you’ll need to go through the same process as we are in this series. Here are the details of the property and notes on offer structures...
Deal #1
Property info- Wyoming SFH, 3 bed, 2 bath, 1 car garage, 2200 sqft, .23 acre, built in 1963. Occupied by the owner. 74K owed on mortgage. 736 piti/monthly payment. Owner wants to move right away to join husband in Texas who has taken a new job opportunity. Minor repairs needed. Taxes 1421/yr.
Before we create offers we must- Pull comps, check taxes, and pull Rental comps. Sources: Zillow, County Assessor, Biggerpockets and Rentometer.
Worth 260K-270K by realtor opinion. Asking 170-175K. To be structured as All inclusive trust deed/wrap around mortgage for existing loan terms plus new note.
Offers
Cash 160K
Short term finance offer 175K. 15K 1,000. At 4% 6months 157,176. Plus taxes and insurance.
Long term 4 yr. 190K 10K 2.5% ,1000/month Balloon to Seller $148,483. Sell to an owner occ for 275K with 3K. 228,740 Difference $80,257 + 20K =110,257 13,344 cash flow over 4yrs= 13,344+110,257= $113,601. Seller grosses 206,483 over 4yrs.
Subordination 210K 80K down. 3yrs Seller financed 130K. 533.33/ month int only to our lender. 500/month principle only to the seller. Seller balloon 112,000. Our Buyer’s Ballon $233,098= 41,098 difference plus 8,820 cash flow= 49,918 plus 30K down from our buyer = 79,918 profit.
Hope you enjoy!
Monday Aug 09, 2021
Ep 170 pt1. Jonathen's Turn- Deal Structuring Straight From The CRM
Monday Aug 09, 2021
Monday Aug 09, 2021
Deal structuring straight from the CRM- Jonathon’s turn.
Now it’s Jonathen’s turn to structure the offers… In this series we pull leads straight from Jeff’s CRM for some deal structuring. If you are generating leads and want to utilize creative financing then you’ll need to go through the same process as we are in this series. Here are the details of the property and notes on offer structures...
Deal #1
Property info- Wyoming SFH, 3 bed, 2 bath, 1 car garage, 2200 sqft, .23 acre, built in 1963. Occupied by the owner. 74K owed on mortgage. 736 piti/monthly payment. Owner wants to move right away to join husband in Texas who has taken a new job opportunity. Minor repairs needed. Taxes 1421/yr.
Before we create offers we must- Pull comps, check taxes, and pull Rental comps. Sources: Zillow, County Assessor, Biggerpockets and Rentometer.
Worth 260K-270K by realtor opinion. Asking 170-175K. To be structured as All inclusive trust deed/wrap around mortgage for existing loan terms plus new note.
Offers
Cash 160K
Short term finance offer 175K. 15K 1,000. At 4% 6months 157,176. Plus taxes and insurance.
Long term 4 yr. 190K 10K 2.5% ,1000/month Balloon to Seller $148,483. Sell to an owner occ for 275K with 3K. 228,740 Difference $80,257 + 20K =110,257 13,344 cash flow over 4yrs= 13,344+110,257= $113,601. Seller grosses 206,483 over 4yrs.
Subordination 210K 80K down. 3yrs Seller financed 130K. 533.33/ month int only to our lender. 500/month principle only to the seller. Seller balloon 112,000. Our Buyer’s Ballon $233,098= 41,098 difference plus 8,820 cash flow= 49,918 plus 30K down from our buyer = 79,918 profit.
Hope you enjoy!
Monday Aug 02, 2021
Ep 169 pt.3 Deal Structuring Straight From The CRM
Monday Aug 02, 2021
Monday Aug 02, 2021
In this series we go straight to Jeff’s CRM for some deal structuring. Here are some details of the property... 3bd 2bath 2 car garage 2100 sq ft. .16 lot built 2016. Owner lives there. Open to terms. Free and clear. Excellent condition. 108/m HOA. The Seller thinks it is worth 400K. Taxes $2051. Zestimate 339K. We think ARV is 375K to 380K. $1900-$2000 is market rents. What would you structure? We came up with the following….
Offers
Interest hybrid offer-
395K PP 21K down 374K at 2.5% interest for 3rys. Balloon = 343,346.78. So what do they net- 1600x36 + 21K + 343,346 = Seller nets 421,946 at end of term. Sell to Owner Occupant for 425 with 10% down at 4% interest for 36months.
Second offer-
309K PP 27K down 3.5% over 30yrs pmt 1630/m Balloon 325,600.37. Seller nets 450,400. Sell to Owner Occupant at 425K with 10%down at 4.5% interest for 5yrs.
Third offer- Subordination-
405K PP 70K down borrowed at 6% interest= 350/month interest only on first note. 335K owed to Seller. 1,100/m principal only payments for 42months = 46,200. Minus the 335K= Balloon 288,800 at end of term plus 70K. Sell to Owner Occupant for 425K with 40K down at 4.5% for 42months. Seller owes you 361,984 at the end of term.