The Creative Financing Podcast
Business:Investing
In this series we talk about understanding creative financing, the strategies used, and the pro’s and con’s of each. Here are the different strategies and how they pertain to the following …
Title Transfer
Foreclosure
Taxes
Due on Sale Clause
Maintenance and Repairs,
Closing and Transfer tax
We use an example of a property with 4 single family homes on one lot. It needs about 60K in repairs, the seller is asking 110K and owns it free and clear. It can rent for 2400/month with an estimated expense of 800/month, which leaves 1600 in monthly cash flow. We can offer the Seller 750/month principle only. Now with the amount needed in repairs we need to get in light, say 5K, then refinance the property as soon as possible after repairs are complete, in order to recapture our capital. So what strategy do we use? We would just use a 1st position trust deed and note because it's free and clear.
Now Let's say there is a debt of 40K with 550/month payment. Then what? Well we can still offer 750/month, with wrapping their exact loan terms and offer 200 in principal only payments on a second note for the balance of their equity. This is where we would use an All inclusive trust deed and note or wrap around mortgage as our strategy.
Wrap Around Mortgage: 1 Note Example: Property info- SFH with ARV of $250K. Owes 57K. Payment 635/m PITI. Rented for $675. Could rent for 1400/month. Needs 25K in repairs. Cash offer at $165K.
Offered 180K PP. 9K down. New note $171K @ 2.5% 850/m principle and interest. Term 3.5 years. Balloon 149,351.
Wholesale to a landlord for $201K with $30K down.
Wrap Around Mortgage: 2 Notes Example: Create 1 note for exact terms of the existing note on the property. So 57K principle, same interest rate and term with same amortization schedule.
Second note- 114K principle with 225/month principal only payments for 42 months. Balloon of 104,550 on seco
Creating Long-Term Creative Financing Offers
Live Creative Finance Deal Structuring
Creative Financing for Real Estate Beginners: Tips and Tricks to Structure Deals
How To Differentiate Your Creative Financing Offers
Long-Term Financing Offer Deal Structuring | Creative Offers
The Easiest Creative Financing Offer To Write | Creative Offers
Everything You Need To Write Your First Owner Financing Offer | Creative Offers
How to Fill Out a Real Estate Contract | Contract Tips
2 Essential Addendums in a Creative Financing Contract | Contract Tips
Writing a Creative Financing Purchase Agreement | Contract Tips
The Ultimate Guide to Writing a Creative Financing Purchase Agreement
Writing Creative Financing Real Estate Offers
How To Buy A Property with Little to No Equity | Real Estate Wraps
Are Wrap Around Mortgages Better Than Subject-To in 2023 | Real Estate Wraps
Close More Deals in 2023 with Wrap Around Mortgages | Real Estate Wraps
12 Common Mistakes Investors Make Using Creative Financing (Part 4)
12 Common Mistakes Investors Make Using Creative Financing (Part 3)
12 Common Mistakes Investors Make Using Creative Financing (Part 2)
12 Common Mistakes Investors Make Using Creative Financing (Part 1)
How To Build A Creative Financing Real Estate Company w/ Brandon and Nick
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