Deal structuring straight from the CRM- Jonathon’s turn.
Now it’s Jonathen’s turn to structure the offers… In this series we pull leads straight from Jeff’s CRM for some deal structuring. If you are generating leads and want to utilize creative financing then you’ll need to go through the same process as we are in this series. Here are the details of the property and notes on offer structures...
Property info- Wyoming SFH, 3 bed, 2 bath, 1 car garage, 2200 sqft, .23 acre, built in 1963. Occupied by the owner. 74K owed on mortgage. 736 piti/monthly payment. Owner wants to move right away to join husband in Texas who has taken a new job opportunity. Minor repairs needed. Taxes 1421/yr.
Before we create offers we must- Pull comps, check taxes, and pull Rental comps. Sources: Zillow, County Assessor, Biggerpockets and Rentometer.
Worth 260K-270K by realtor opinion. Asking 170-175K. To be structured as All inclusive trust deed/wrap around mortgage for existing loan terms plus new note.
Short term finance offer 175K. 15K 1,000. At 4% 6months 157,176. Plus taxes and insurance.
Long term 4 yr. 190K 10K 2.5% ,1000/month Balloon to Seller $148,483. Sell to an owner occ for 275K with 3K. 228,740 Difference $80,257 + 20K =110,257 13,344 cash flow over 4yrs= 13,344+110,257= $113,601. Seller grosses 206,483 over 4yrs.
Subordination 210K 80K down. 3yrs Seller financed 130K. 533.33/ month int only to our lender. 500/month principle only to the seller. Seller balloon 112,000. Our Buyer’s Ballon $233,098= 41,098 difference plus 8,820 cash flow= 49,918 plus 30K down from our buyer = 79,918 profit.
Hope you enjoy!