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.