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 103 Creative Ways of Pulling Equity Out Using Creative Financing
Ep 102 Creating Terms On Multi-Million Dollar Properties In LA With Anthony Green
Creative Financing What Makes It Work
Ep 100 Our Big 100! Live Q&A
Ep 099 Current Events And How It Can Affect Your Real Estate Investing Business
Ep 098 Structuring Terms On Properties That Need A Lot Of Work
Ep 097 Helping Our Fellow Listener Structure Terms On His Deal
Ep 096 Case Study 2- Commercial; How To Make Creative Financing Offers
Ep 095 Case Study- Commercial; How To Make Creative Financing Offers
Ep 094 When Things Go Wrong On A Substitution Of Collateral Deal, How To Make Them Right
Ep 093 The 6 Most Common Objections On Seller Financing And How To Handle Them
Ep 092 Case Study- Deal Breakdown; What To Do If Your Seller Is Buying On A Contract For Deed
Ep 091- How To Get A Pre-foreclosure Subject To Deal Done in 2 Days!
Ep 090 Pt.3 How To Create Cash Flow Using Creative Financing In None Cash Flowing Markets
Ep 089 Pt.2 How To Create Cash Flow Using Creative Financing In None Cash Flowing Markets
Ep 088 Pt.1 How To Create Cash Flow Using Creative Financing In None Cash Flowing Markets
Ep 087 Pt.2 Earning Massive Interest Selling On Contracts- Interview With Mike Cowper
Ep 086 Pt.1 Earning Massive Interest Selling On Contracts- Interview With Mike Cowper
Ep 085 Pt.2 Creating Offers Step By Step
Ep 084 Pt.1 Creating Offers Step By Step
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