The Creative Financing Podcast
Business:Investing
In this series we continue the Pop Quiz from Jeff and turn the focus to deal structuring. We apply creative financing principles to deal structuring using real life examples. We cover the following:
Determine your buyer- Who are my Buyers: Flippers, Landlord, Owner Occ, Retail Buyer (on Market)
High purchase price, Down payment, monthly payment, Low equity- Owner Occupant.
Owner occ- term to be 3yrs minimum.
Get in light- 5-7%. Not a hard number. We need 30days to find a buyer.
What would be a good monthly payment for a property, affordably. Would it make sense as a rental? Median price range of rents.
What's enough equity to have to make it a deal work- price is the least important criteria when using creative financing, down payment and monthly payment are the most important.
How much can you raise the price when selling on terms? Within reason. Does the condition justify the price? 10-20K above market value
How to determine length of term- depends on your exit strategy and who your end-buyer is. Also how long of a term works for the Seller, and what is their goal with the proceeds.
How much can you offer when selling to a Landlord
What's too much for repairs? Depends on down payment and who's your buyer. But cash on cash returns for a landlord needs to be 12% min. That's the all in cash required for down payment, repairs, closing etc. Equation equals cash flow x 12 divide all in cash = cash on cash return. Return needs to be a minimum of 12%. Unless, however, the landlord can do a cash out refinance after repairs and stabilizing, therefore lowering the out of pocket cash requirement.
How much of a ARV discount should we try to get from a landlord? Look for value add, or equity. Cash on Cash return. Also, least important is cap rate.
When do we shorten the amortization schedule? To make a payment work in our favor. More so for 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.
Ep 123 Determining Your Exit Strategy
Ep 122 Back To The Basics- The 5 Strategies
Ep 121 Pt.3 Deal Structuring Walk Through On Condos
Ep 120 Pt.2- Deal Structuring Walk Through On Condos
Ep 119 Pt. 1- Deal Structuring Walk Through On Condos
Ep 118 Pt.4- 4 Ways You Can Use Lease Options
Ep 117 Pt.3 4 Ways To Use Lease Options
Ep 116 Pt.2 4 Ways You Can Use Lease Options
Ep 115 Pt.1 4 Ways You Can Use A Lease Option
Ep 114 Pt.2 What Every Creative Financing Deal Begins With; An Interview With Andy McFarland
Ep 113 Pt. 1 What Every Creative Financing Deal Begins With; An Interview With Andy McFarland
Ep112 Deal Structuring On Leads That No One Is Looking At
Ep 111 Restructuring Terms To Create Financing That You Can Tap Into Again And Again
Ep 110 How To Use Cross Collateral In Creative Ways To Buy/Sell Real Estate.
Ep 109 How To Extend Your Term With A Blended Interest Rate
Ep 108 Pt.2 Creative Financing Strategies for Commercial Investing With Josh Zieglowsky
Ep 107 Pt.1 Creative Financing Strategies for Commercial Investing With Josh Zieglowsky
Ep 106 Pt.3 Creative Finance Deals You'll Find In A Market Downturn
Ep 105 Pt.2 Creative Finance Deals You'll Find In A Market Downturn
Ep 104 Pt. 1 Creative Finance Deals You'll Find In A Market Downturn
Create your
podcast in
minutes
It is Free
The Commercial Edge: Unleash the Power of People
The emPOWERed Half Hour
U.S Property Podcast
Aligned Money Show
Dubai Property Podcast
The Ramsey Show
The Clark Howard Podcast