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 064 Contract For Deed In Detail
Ep 063 Pt. 2 Right and Wrong Ways of Deal Structuring
Ep 062 Pt.1 Right and Wrong Ways of Deal Structuring
Ep 061 Pt. 2- How To Talk To Sellers About Creative Financing
Ep 060 Pt.1- How To Talk To Sellers About Creative Financing
Ep 059 Pt. 6- Best Leads for Creative Financing Deals
Ep 058 Pt. 5- Best Leads for Creative Financing Deals
Ep 057 Pt. 4 - Best Leads For Creative Financing Deals
Ep 056 Pt. 3- Best Leads for Creative Financing Deals
Ep 055 Pt. 2- Best Leads for Creative Financing Deals
Ep 054 Pt. 1- Best Leads for Creative Financing Deals
Ep 053 Pt.2 - Creative Deal Structuring And Negotiations
Ep 052 Pt.1 - Creative Deal Structuring And Negotiations
Ep 051 Wholesaling Virtually Using Creative Terms
Ep 050 Pt. 2- An Actual Deal With One Of Our Listeners, Lance from San Antonio
Ep 049 Pt.1- An Actual Deal With One Of Our Listeners, Lance From San Antonio
Joe McCall Interview All About Lease Options
Ep 048 Pt.2- Creating Multiple Offers and Exit Strategies
Ep 047 Pt.1- Creating Multiple Offers and Exit Strategies
Ep 046 Creative Uses of Trusts For Asset Protection and Privacy with Jeff Breglio
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