Ep 169 pt.3 Deal Structuring Straight From The CRM

In this series we go straight to Jeff’s CRM for some deal structuring. Here are some details of the property... 3bd 2bath 2 car garage 2100 sq ft. .16 lot built 2016. Owner lives there. Open to terms. Free and clear. Excellent condition. 108/m HOA. The Seller thinks it is worth 400K. Taxes $2051. Zestimate 339K. We think ARV is 375K to 380K. $1900-$2000 is market rents. What would you structure? We came up with the following….

 

Offers

Interest hybrid offer-  

395K PP 21K down 374K at 2.5% interest for 3rys. Balloon = 343,346.78.  So what do they net- 1600x36 + 21K + 343,346 = Seller nets 421,946 at end of term. Sell to Owner Occupant for 425 with 10% down at 4% interest for 36months. 

 

Second offer- 

309K PP 27K down 3.5% over 30yrs pmt 1630/m Balloon 325,600.37. Seller nets 450,400. Sell to Owner Occupant at 425K with 10%down at 4.5% interest for 5yrs.

 

Third offer- Subordination-

405K PP 70K down borrowed at 6% interest= 350/month interest only on first note. 335K owed to Seller. 1,100/m principal only payments for 42months = 46,200. Minus the 335K= Balloon 288,800 at end of term plus 70K. Sell to Owner Occupant for 425K with 40K down at 4.5% for 42months. Seller owes you 361,984 at the end of term.