Jan '25 • Live Weekly Calls
Buy & Hold/ Fix & Flip Opportunity. San Antonio TX
1. Purchase Price with Assignment fee: $159,999
- Purchase Price with Seller: $149,999
2. Down Payment: $100,000
3. Seller Financing Terms:
- Amount Financed: $49,999
- Interest Rate: Adjusted to 11.2% to achieve higher $500/month payment requested by seller
- Amortization Term: 30 years
- Balloon Payment: Due in 5 years
4. Monthly Payment to Seller: $500/monthly
5. Third-Party Servicing Company:
- A third-party servicing company will be hired to manage and ensure timely monthly payments to the seller, providing assurance and convenience for both parties.
6. Closing Costs:
- Estimated at 2% to 5% of the Purchase Price, approximately $3,000 to $7,500, to be paid by the buyer.
7. Repair Costs:
- Buyer to cover estimated repair costs of $25,000. ARV= $175k (conservative)
8. Contingencies:
- Property Inspection: End-Buyer reserves the right to have a 7-day inspection period and conduct a thorough inspection.
- Financing Approval: Subject to securing acceptable financing terms.
9. Assignment Clause:
- The buyer has the rights to and plans to assign this contract to an end buyer for a profit of $10,000. The assignment fee, will be paid by the end buyer upon closing.
10. Refinance or Sale Clause:
- The end buyer may refinance or sell the property at any time if it is deemed financially advantageous to do so.
11. Performance Deed-in-Lieu Clause:
- In the event of a default, the buyer agrees to provide a performance deed-in-lieu of foreclosure, allowing the seller to reclaim the property without a formal foreclosure process.
12. Additional Terms:
- The buyer seeks to negotiate additional terms to maximize rental income and ensure mutual satisfaction.
13. Monthly Cash Flow:
- Estimated Monthly Rent: $1,900
- Monthly Operating Expenses: $380
- Monthly Cash Flow: $1020
14. Final Balloon Payment:
- Using the adjusted interest rate and payment schedule, calculate the remaining balance due at the end of 5 years.
15. Proposed Closing Date:
- 14 days from contract acceptance, or sooner if desired.
Benefits for the Seller:
- Substantial Down Payment: Immediate liquidity with a $100,000 down payment.
- Continuous Income: $500 monthly payments provide steady income.
- Third-Party Payment Management: Ensures timely and reliable payments.
- Quick Sale: Agreed purchase price facilitates faster closing.
- Balloon Payment: Remaining balance paid in 5 years, offering financial flexibility.
- Added Security: The performance deed-in-lieu clause provides an efficient recourse in case of default.
Benefits for the Buyer:
- Strong Cash-On-Cash Return: Appealing 9.34% Cash-on-cash return is higher than average local CoC return of the area for alike properties.
- High Cap Rate: 12.16% cap rate offers strong ROI.
- Healthy Cash Flow: $1020/month cash flow ensures lucrative investment.
- Favorable Profit Margin: 40.13% profit margin for fix and flip exceeds typical targets.
- Rental Income Potential: Estimated $1,900/month rent contributes to positive cash flow.
- Flexible Financing: Seller financing eases acquisition process.
- Investment Flexibility: Option to refinance or sell enhances financial strategy.
Please DM me with any questions you may have.
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Buy & Hold/ Fix & Flip Opportunity. San Antonio TX
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