31 min
Ep 119 Pt. 1- Deal Structuring Walk Through On Condos The Creative Financing Podcast
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- Investing
Once again, it's back to the basics with deal structuring 101. On this series we come up with 3 different offers for a condo. Jeff wanted to use this example because people always ask if you can use creative financing on condos and the answer of course is YES! Here is the details and the offers we came up with....
Condo 2bed 1.5 bath. 1000 sqft. Seller owes 30K and is asking 170K. Monthly payment is $410 with $140 HOA. This could rent for $1150/month and ARV is 190K.
Option 1
7K down 170K PP. 163K financed at 2.5% simple interest for 4 years.
Exit: Sell to an owner occupant for 200K at 5.5% interest with 20K down for 3 years.
Once again, it's back to the basics with deal structuring 101. On this series we come up with 3 different offers for a condo. Jeff wanted to use this example because people always ask if you can use creative financing on condos and the answer of course is YES! Here is the details and the offers we came up with....
Condo 2bed 1.5 bath. 1000 sqft. Seller owes 30K and is asking 170K. Monthly payment is $410 with $140 HOA. This could rent for $1150/month and ARV is 190K.
Option 1
7K down 170K PP. 163K financed at 2.5% simple interest for 4 years.
Exit: Sell to an owner occupant for 200K at 5.5% interest with 20K down for 3 years.
31 min