Analyzing Deals 303 – Subject-To and Lease-Options – 2016 Edition

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