In this episode Jeff again puts me on the spot to learn how he structures terms on a 5-Plex. 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 revolves around one thing.... the monthly payment you can offer your Seller. In order to determine that you need to know a few things:
#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.