Ep 070 Pt.2 Real Time Deal Structuring

In this episode Jeff puts me on the spot to learn how he structures terms on deals. He gives me the property info from one of his leads and leaves it up to me to create some terms. The best way for you to benefit from these episodes is to grab a financial calculator and follow along. You'll notice in these episodes that the constant factor in creating terms ALL evolves around one thing.... the monthly payment you can offer your Seller. In order to determine that you need to know a few things:

#1- what cash flow you need a month for your desired ROI, known as Cash-On-Cash Return.

#2- what operating expenses are associated with the property i.e. water, sewer, garbage, taxes, insurance, and property management if you choose not to self manage.

#3- what underlying debt is on the property and the monthly debt service.  

These are all the pieces of the puzzle and once you have them you can put together profitable deals that create win/win terms for you, your Seller, and your End-Buyer if you choose to wholesale the property.