44 min
Ep 124 How To Create Terms Around An Existing Lease- A Hybrid Approach The Creative Financing Podcast
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- Investing
On this episode we talk about how to structure financing around a new lease that the Seller has just signed. This is a very creative deal because Jeff teaches us how he was able to structure hybrid terms to deal with the tenant for the term of the lease and THEN create additional terms thereafter to make this a deal. And the key to making this whole thing work is to get in light which is an ongoing theme of this show and creative financing. So pay attention and watch how this works… 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.
SFR- 4 bed 2 bath FMV= 485K, 200K owed 1400 payment, it's a rental, 2100 rents. Needs little down, supreme area. Exit strategy- Wholesale to Buyer
Offer 490K with 22K down. Payment for 12 months- 1,550. Cash on Cash return 17.8%
After 12 months principle = 461,020 interest 3% interest with 36 month term and payment of 1950
1550x12= 18,600 + 22,000= 40600 + (1950x36) = 70,200 + 431,019= 541,819 Gross to Seller over 48 months.
Sell to Owner Occupant at 515,00 with 50K down financed 465,000 at 5% for= 2496 payment. 25K made up front = 4000 + 20,000 = 12000 difference of principle= 60,000 approximate profit over 48 months.
On this episode we talk about how to structure financing around a new lease that the Seller has just signed. This is a very creative deal because Jeff teaches us how he was able to structure hybrid terms to deal with the tenant for the term of the lease and THEN create additional terms thereafter to make this a deal. And the key to making this whole thing work is to get in light which is an ongoing theme of this show and creative financing. So pay attention and watch how this works… 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.
SFR- 4 bed 2 bath FMV= 485K, 200K owed 1400 payment, it's a rental, 2100 rents. Needs little down, supreme area. Exit strategy- Wholesale to Buyer
Offer 490K with 22K down. Payment for 12 months- 1,550. Cash on Cash return 17.8%
After 12 months principle = 461,020 interest 3% interest with 36 month term and payment of 1950
1550x12= 18,600 + 22,000= 40600 + (1950x36) = 70,200 + 431,019= 541,819 Gross to Seller over 48 months.
Sell to Owner Occupant at 515,00 with 50K down financed 465,000 at 5% for= 2496 payment. 25K made up front = 4000 + 20,000 = 12000 difference of principle= 60,000 approximate profit over 48 months.
44 min