Getting paid to refinance!!!

In a prior post, I told you about zero interest seller carry.  Want to know how to create more cash flow?  We have talked to the seller if they would take $70,000 cash for an early payoff. on the $96,000 balance.  We have a great equity builder in this deal but the cash flow is light.  We have a lender that is willing to finance for 3.75 on  15 year portfolio loan.  In other words, they will hold their loan in the bank.  The property has appreciated to about $200,000 and we asked for a cash loan of $100,000.  In addition, the seller has agreed to take $75,000 for a payoff.

Here is the bottom line, we will walk with $25,000 cash to do other business (buy more property) and our new payment will be $727.22 pi/month.  This increases our cash flow by almost $700/month and we now have $100,000 of equity where before the refi, we had $104,000 in equity.  

Check out the prior post and then see where you can apply this concept in your business.