Owner financing calculator

Dallas, Texas
Real Estate Deal Analysis & Advice
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Owner financing calculator

Naor Biringer
Investor · Dallas TX · Member since 2018 · 27 posts · 5 votes

Hello forum 

Question to anyone who has some experience with buy and sell owner financing terms.

I have investors group wanting to purchase large tract of land , divide it and sell with contract for deed. 

Is there any calculator out there ? Or something close which could be modified that you know and can share?

Thank you !

Naor 

1Reply
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Vitalii Lunko
Contractor · Huntsville, AL · Member since 2019 · 44 posts · 9 votes
2y
Quote from @Naor Biringer:

I have built 100's spreadsheets by my own as well. 
Through Flix flip hold and brrrr , for my investors and myself. and probably will do one for this scenario as well... 
I was puzzled about the different FSBO financing options and how would they affect the profits within different amortizations/ down payment/ interest rates etc.
I guess I could use a basic mortgage calculator and imbed it to this calculator. 
Thank you all for your reply .


 Can you share one? 

1Reply
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  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    3y

    @Naor Biringer

    What are you trying to calculate? This just seems like a simple excel file

    7e investments53 Reviews
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    1Reply
  • Doug SmithPro Member
    Lender · Tampa, FL · Member since 2013 · 2k+ posts · 2k+ votes
    3y

    Over a decade ago when we first started, we were using Excel Spreadsheets. Every time we had a closing, we took the settlement statement, looked at where our flaws were and tweaked it. We also have a privte equity side where we take on investors with capital but don't have the resources or experience to do what we do (investing and lending), so I agreed to manage a friend's Self-Directed IRA for free if he would design us a custom system (he works for a huge tech firm and has a masters in MIS). What I found, however, is that we kept monkeying with the model that we still use spreadsheets today. I do see how most on here want to use formulas and percentages (X% rules, etc), but in reality, we start with the As Repaired Value on flips, we back out our desired profit margin, rehab costs, carrying costs, back out a contingency reserve, and a few other items to get a strike price...the maximim we'll pay for a property...and there you have it. We continually refine it, but a lot of the spreadsheets I see miss a lot. I think you can probably build a great one on your own.

    0Reply
  • Naor Biringer
    OP
    Investor · Dallas TX · Member since 2018 · 27 posts · 5 votes
    3y

    I have built 100's spreadsheets by my own as well. 
    Through Flix flip hold and brrrr , for my investors and myself. and probably will do one for this scenario as well... 
    I was puzzled about the different FSBO financing options and how would they affect the profits within different amortizations/ down payment/ interest rates etc.
    I guess I could use a basic mortgage calculator and imbed it to this calculator. 
    Thank you all for your reply .

    0Reply
  • Vitalii Lunko
    Contractor · Huntsville, AL · Member since 2019 · 44 posts · 9 votes
    2y
    Quote from @Naor Biringer:

    I have built 100's spreadsheets by my own as well. 
    Through Flix flip hold and brrrr , for my investors and myself. and probably will do one for this scenario as well... 
    I was puzzled about the different FSBO financing options and how would they affect the profits within different amortizations/ down payment/ interest rates etc.
    I guess I could use a basic mortgage calculator and imbed it to this calculator. 
    Thank you all for your reply .


     Can you share one? 

    1Reply
  • Andrey Shostak
    Member since 2016 · 17 posts · 6 votes
    1mo

    Try this one. It's free, and results are live/instant, so you can compare effects of different terms quickly.

    0Reply
  • Alyssa MarquezBusiness Member
    Real Estate Agent · San Antonio TX / Fort Lauderdale, FL · Member since 2023 · 120 posts · 29 votes
    1mo

    Very doable in a simple Excel or Google sheet with the standard amortization formula. I would include sales price, down payment, financed balance, rate, term, balloon payment (if any), and monthy payment. Because they are splitting up a larger piece of ground I would track the land cost and development costs by lot too, so they can see true profit and cash flow of each note.

    I would absolutely have a local real estate attorney review the contract for deed documents and the contract before actually selling.

    How long are they looking to service the notes themselves.

    1Reply
  • Garrett BrownPro Member
    Rental Property Investor · Houston, TX · Member since 2024 · 515 posts · 553 votes
    1mo

    I've done tons of owner financing deals. Just build one in Claude is my suggestion now and stress test it.

    [email protected]
    BiggerPockets
    0Reply
  • Diana KhanPro Member
    Attorney · 10451 Mill Run Cir #755 Owings Mills, MD 21117 · Member since 2024 · 555 posts · 190 votes
    1mo
    Quote from @Naor Biringer:

    Hello forum 

    Question to anyone who has some experience with buy and sell owner financing terms.

    I have investors group wanting to purchase large tract of land , divide it and sell with contract for deed. 

    Is there any calculator out there ? Or something close which could be modified that you know and can share?

    Thank you !

    Naor 

    @Naor Biringer, I would actually keep this pretty simple. For each lot, I’d use a basic amortization schedule and add the numbers that matter to the full deal: land cost allocated to that lot, development cost, sale price, down payment, amount financed, interest rate, amortization period, balloon date, and monthly payment.

    Then I’d have the sheet show five things side by side: cash received at closing, monthly note income, total interest collected, balance still due at the balloon, and total profit on that lot. I would also run the same deal under two or three different sets of terms so you can quickly see what happens if you change the down payment, rate, or balloon period. That is usually much more useful than looking at the monthly payment alone.

    I’d be glad to stay connected too. I enjoy seeing how other investors structure owner-financed deals like this. Since you are in Texas, I would still have Texas counsel review the actual contract-for-deed documents before using the structure.

    [email protected]240-266-0291
    0Reply
  • Ronald RohdePro Member
    Attorney · Dallas, TX · Member since 2016 · 5k+ posts · 2k+ votes
    4w

    Don't do contract for deed. its highly regulated in Texas and very difficult to comply with the recent law. Do lease option, or just owner finance.

    0Reply
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