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 083 LOI's What You Need To Know
Ep 082 How To Flip A House Using A Reverse Mortgage 12-1-19
Ep 081 Pt. 2 Marketing- The Broad Overview And The Little Details
Ep 080 Pt. 1 Marketing- The Broad Overview And The Little Details
Ep 080 All About Subject To's
Ep 079 How To Find Buyers- The 8 Sources
Ep 078 How To Deal With Repairs When It Comes To Creative Financing
Ep 077 How To Quickly Identify Deal Killers; the BIG 5
Ep 076 How to Scale Creative Financing Offers
Ep 075 Interview With Fellow Listener Adam Hall
Ep 074 Pt. 2 Deal Structuring On A Duplex With Underlying Debt
Ep 073 Pt.1 Deal Structuring On A Duplex With Underlying Debt
Ep 072 pt.2 Creative Deal Structuring On A 5-Plex
Ep 071 Pt.1 Creative Deal Structuring On a 5-Plex
Ep 070 Pt.2 Real Time Deal Structuring
Ep 069 Pt.1 Real Time Deal Structuring
Ep 068 When To Use What Creative Financing Strategy
Ep 067 Pt. 2 How To Structure Terms On Listed Properties
Ep 066 Pt.1- How To Structure Terms On Listed Properties
Ep 065 How Dustin Hamel (a fellow listener) Structured His First Creative Financing Deal
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