The Creative Financing Podcast

On this episode we go over a great example on what to do with leads with slim margins.

Here are the details-

ARV 150K. 146K Owed, behind on payments. 2bed 1 bath 4.5% int. 1180/month PITI. Rents 1000/month. Could be converted to 3-4 beds. Seller needs 2K to move. How do you structure terms? Things to consider; condition of home, layout, market rents. Is the location good?

Options for exit strategy

1. Sell to owner Occ as is and assign contract- give 1K down, 7-10yrs. Leave VA 

Hope you 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.

On this episode we interview Russ O’Donnell and talk about the Dodd-Frank Compliance and The Safe Act. Russ O’Donnell is a licensed RMLO and HUD Certified Underwriter. He is also the CEO and Founder of Call The Underwriter, a company that helps private lenders and investors remain Dodd-Frank compliant.  We talk about what you need to do when selling on creative terms and go over 

• Russ’s experience in lending.

On this episode we interview Russ O’Donnell and talk about the Dodd-Frank Compliance and The Safe Act. Russ O’Donnell is a licensed RMLO and HUD Certified Underwriter. He is also the CEO and Founder of Call The Underwriter, a company that helps private lenders and investors remain Dodd-Frank compliant.  We talk about what you need to do when selling on creative terms and go over 

• Russ’s experience in lending.

On this series we go in depth on structuring terms on an overpriced property. This is a hard one and I really had a hard time coming up with my own offers so get your calculators out and see if you can come up with your own offers...

Here is the key notes-

Asking too much to wholesale. Too much to buy with own cash . 8 unit townhomes, 2bed 1bath. Could be sold individually. Free and clear asking 649K, prefer cash or short term financing 2 years or less. Rent $5,150. Tenants pay for electricity and water.  Market rents are 750-800/month. Long term tenants. Low rents

Property Info:

Taxes- 6K 

Insurance 3800

Landscape- 840

Management- 4800

maint/repairs 4800

Utilities- 3000

On this series we go in depth on structuring terms on an overpriced property. This is a hard one and I really had a hard time coming up with my own offers so get your calculators out and see if you can come up with your own offers...

Here is the key notes-

Asking too much to wholesale. Too much to buy with own cash . 8 unit townhomes, 2bed 1bath. Could be sold individually. Free and clear asking 649K, prefer cash or short term financing 2 years or less. Rent $5,150. Tenants pay for electricity and water.  Market rents are 750-800/month. Long term tenants. Low rents

Property Info:

Taxes- 6K 

Insurance 3800

Landscape- 840

Management- 4800

maint/repairs 4800

Utilities- 3000

On this series we go in depth on structuring terms on an overpriced property. This is a hard one and I really had a hard time coming up with my own offers so get your calculators out and see if you can come up with your own offers...

Here is the key notes-

Asking too much to wholesale. Too much to buy with own cash . 8 unit townhomes, 2bed 1bath. Could be sold individually. Free and clear asking 649K, prefer cash or short term financing 2 years or less. Rent $5,150. Tenants pay for electricity and water.  Market rents are 750-800/month. Long term tenants. Low rents

Property Info:

Taxes- 6K 

Insurance 3800

Landscape- 840

Management- 4800

maint/repairs 4800

Utilities- 3000

Offer Structuring On An 8 plex 9/19/20

Pt. 1-  On this series we go in depth on structuring terms on an overpriced property. This is a hard one and I really had a hard time coming up with my own offers so get your calculators out and see if you can come up with your own offers...

Here is the key notes-

Asking too much to wholesale. Too much to buy with own cash . 8 unit townhomes, 2bed 1bath. Could be sold individually. Free and clear asking 649K, prefer cash or short term financing 2 years or less. Rent $5,150. Tenants pay for electricity and water.  Market rents are 750-800/month. Long term tenants. Low rents

Property Info:

Taxes- 6K 

Insurance 3800

Landscape- 840

Management- 4800

maint/repairs 4800

Utilities- 3000

On this episode we talk about what makes a deal work and the key pieces of info you need. A lot of investors try to make deals where the numbers just don’t make sense. Consider all exit strategies. Creative financing does not solve all problems nor does it make all deals work. 

Consider these numbers… 340 ARV Loan 232K behind 15K want 50 at closing. Piti 1600/month could rent to 1800. Is this a deal? Consider Selling to an owner occupant at $340K and ask the Seller what if I got you 50K? Offer 10K at closing 40K in 6 months and wholetail it. Or I’ll bring your payments current, give a portion up front, a little cash over time. Would that work for you?

Hope you 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.

On this episode we talk about a deal where we are able to offer way more money than our competitor by structuring terms. Always let the Seller know the following-  We can pay more if you're open to it. This is a rental, so how would you like to make better cash flow?

This is the property info: 4 bed 2 bath 1500sqft. Seller owes 57K 635 piti, receiving 675 in rent. Property is dated. Could rent for 1500/month. ARV 255K. She already had a cash offer of 165K. 

Offer 180K pp 9K down 2.5% 850/month for 42 months. We will owe 149,351. Almost 22K principal paydown and the Seller gets 194,051 gross after 42 months. 

Wholesale for 206K to a Landlord with 35K down and the buyer would make repairs /upgrades.

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.