Apply these creative financing commercial real estate techniques with someone by your side to do them right, apply to our Protege Program: www.commercialpropertyadvisors.com/protege-program
We must protect this man at all costs. I have been to countless Real Estate events and NOT ONE has concisely detailed the information as Mr. Peter. Thank you so much, sir!
I can't thank you enough for allowing a beginner in real estate investing to have these tools or knowledge of these tools in my tool box. No one can do it alone. You are the best. I will definitely put money aside from my first deal to hire you and your team to help me be the best real estate investor I can be.
QUESTION: On the Seller carry 2nd position. How is that written in the purchase agreement 🤝? How does the bank know the seller is going to cover the down payment and finance it to you?
Thanks for your presentations, I am transitioning from 20 years in construction to a Commercial Broker and you are helping me through my licensing course work.
Such a great video. Thank you so much! Very informative. I’m curious about other exit strategies especially if the market turns when You were planning an exit
Someone please help me make sense of Deen’s deal. Because @ 250K down, plus monthly payments of $9375 which is $112,500 annually. However, the current NOI on the building is only $73,603 annually, so Deen is going in the red another $38,897 even after receiving payments from tenants. Then tack on another 20-50K for renovations in order to justify an increase in rent, further puts Deen in the red. So let’s just say that at the beginning of year 2 he has increased the NOI to the guesstimated $285.542, for both the second and third year, he would have made $571,084. Minus lease payments for 2 years @ $225,000. Leaves Deen with $346,084, minus his down payment of $250,000 and let’s say a renovation budget of $50,000. He has only cleared just over $46,000 in a three year span, unless my math is wrong that makes no sense to me , 46K is nothing for three years worth of work. This deal seems like a win for the seller not the buyer.
What if it’s a seller who wants to avoid capital gains taxes but the property is in prestine condition, most of the examples was for distressed properties what if it’s a scenario where the property is well kept
Hi Peter, I really love your video and have watched and learned a lot. When you do 5 yr interest only loan from seller, how long is loan term normally?
I do not understand (Dean’s storage) why the payments were so high on 250K DP?? Third technique Question (seller carry 2nd): Is this added to the seller carries paper? With the seller-equity partnership, what would the terms for repayment be? Duration?
Would one be able to use their VA COE to buy a multiple dwelling residential property with one of the units as the owner's residence and with a property manager handling the complex?
00:02 Importance of creative financing in commercial real estate 02:23 Creative financing techniques for handling distressed seller situations 07:01 Understanding the key elements of creative financing and creating an exit strategy are crucial. 09:15 Master lease agreement lets you take over existing mortgage payments without involving a bank. 13:55 Utilizing creative financing for commercial real estate can provide tax benefits and ownership experience. 16:12 Creative financing through a master lease agreement. 20:37 Understanding seller motivation leads to successful deal structuring 22:42 Seller holding paper and owner financing explained. 26:29 Seller carry second mortgage is a solution for down payment shortage 28:37 Sale lease back is a common commercial real estate financing technique with great benefits. 32:20 Seller Equity Participation benefits sellers Crafted by Merlin AI.
The seller is doing a carry back it's a note where you are paying them just like a second on the property this is very possible this is how I started out in real estate back in the 90s and it works very well
Commercial properties are held under an LLC or Corporation. If I want to buy a apartment complex, should I just buy the existing legal entity (LLC, Corporation) that currently has title to the property or should I form a new legal entity?
HI, great information. In Dean's example, his CAP at purchase was 2.9% (NOI/2.5M). Great CAP for seller. Would you say the ask was too high resulting in a 2.9 CAP? Looks like his payment was interest only at 4.5% for 3 years. Do you sell your Master Lease LOI or would any Real Estate Attorney have one for a ML purchase?
Thank you so much for the great information! Can you clarify how Dan covered the $3200 shortfall per month at the beginning of this deal? Thank you again
You mentioned you can't claim depreciation. Is this because you are not the title holder? Is there a video where you explain the tax write-off benefits?
How does the bank feel about 2nd mortgages ? You say buyer will not benefit from tax depreciation on Master lease and then you say buyer can benefit from tax benefits .where is the benefit ?
I have seller who was advised not to sell to me because the seller would have to pay back the depreciation the seller wrote off. That was after the seller committed to sell. Anything you would have told the seller or just walk away? Thank you,
