All Forum Posts by: Shem Varhaftik

Hopefully this post doesn't break any rules. I'm in contact with a seller who has 6 fully occupied properties bringing in a total of $17K/month. The seller is looking for market value — around $2M — and there's little to no room for value-add since the properties are all turnkey and at market rent. The seller is open to a low down payment of 5%, but the challenge is they want a very short-term balloon (ideally 3 years) and high monthly payments close to $10K. I'm trying to decide if this is even worth pursuing. My plan is to wholesale it, but I don’t want to lock up a deal that isn’t assignable or attractive to a buyer. After closing costs and assignment fee, the buyer won’t recoup their upfront investment through cash flow alone before the balloon comes due — which creates serious refi or resale risk. I'm open to suggestions on how to structure this in a way that gives the seller what they want but still protects the buyer in case they can’t refinance and are forced to sell in a flat or down market. If you feel this deal is unrealistic and not worth pursuing please let me know. Any recommendations would be super helpful — and again, if I’m breaking any posting rules, I apologize.

Hi, I see tons of potential with seller finance and subto deals. I want to get a good idea of whether an investor would deem as a good deal. Lets say you purchase a property for 900k and put 20% down and cover all closing costs. Your all in close to 230k. Lets say this property will cashflow 4k a month after making payments to the seller. Is this a favorable deal to an investor? is there a certain rule I should follow for entry cost: cash flow?