Learn how to analyze properties when buying using a lease-option, lease-purchase or when buying subject-to the existing financing in this special class.
In this class you'll learn:
- Some of the best practices for overcoming fear when investing in real estate
- Why you should get the advice of an attorney before doing creative financing transactions like lease-options and subject-to
- "With great power comes great responsibility." Make sure you use these powerful, creative financing strategies for good in win-win transactions.
- A quick overview of all 6 types of creative financing transactions and the two we're focused on in this class (lease-options/lease-purchases and subject-to)
- The mechanics and overcoming lack of trust... and why we're not actually likely buying subject-to (and what we're doing instead)
- Classes on where to find these types of creative financing deals
- Why would seller's do these types of deals and a reminder that "you're not your sellers" and not everyone is like you
- Why sellers do creative financing deals
- Why sellers don't do creative financing deals
- Dealing with no equity, small equity and high equity sellers
- The 3 offer framework and the typical characteristics of each offer type
- What's the value of a good loan
- Exceptions to every rule, when to obey deal structuring rules and when to break them
- Deal analysis example of a pretty house with a nice loan
- Understanding your exit strategy and how that impacts what you can/should offer
- Is rent for a tenant the same as rent for a tenant-buyer?
- Several ways to look at income on a property from traditional mortgage payment, rent to owner financing
- The 85% rule of thumb and how it relates to structuring creative financing deals
- The secret of mid-month payments... why this might work and the possible treachery of using them
- Locking in your desired profit and common ways to calculate your desired profit when structuring creative financing deals
- What are "best terms" and how to make adjustments based on a number of common situations
- The highest price and best terms offer and what that looks like
- Understanding what the seller might net when using a real estate agent to sell the property
- The most up-front cash offer to a seller how to calculate that
- Now versus later... understanding when you receive your returns and the time value of money
- The middle offer and how to structure that
- What are YOUR costs to do the deal?
- Understanding how much me might receive from a tenant-buyer
- Understanding depreciation and how lease-options/lease-purchases differ from subject-to deals
- The walkaway power of lease-options and lease-purchases and why subject-to is vastly different
- What's the MOST you'd pay?
- Are you gambling on appreciation and rents going up?
- Sample deal analysis #2: dealing with negative cash flow
- Sunk costs and financing down payments
- Using private money second mortgages
- The easy-to-use rule of thumb for giving a seller cash now
- Advanced discussions including negative amortization (negative or no debt paydown), interest rate risks, negative cash flow, etc
- Strategies to mitigate risk on mediocre deals
- Plus much, much more...
Duration: 2 hours and 1 minutes
Recorded: July 27, 2016
Instructor: James Orr
