Spreadsheet Buying Subto (Subject To) with the (BOMSTSLO) ™ Method

[Account Closed]

Here is what one of the new people I coach from Socal did with a property in Phoenix I helped him find. He has taken his training seriously. It’s a Subto (Subject To) that I helped him buy “off market” and he chose to sell on a Lease Option. This also works in OH, IN and GA. I’ve broken it into sections so it’s a little easier to follow.

He is into it for a total $15,828 and nets $106,745 when all is said and done.

Using a traditional bank he would have a 20% down of $55,000 plus $3600 in closing so roughly $58,600. 

That’s a difference of about $42,000 to buy a property. That is money he can use to buy the next one, and the next one. It’s 3 times as efficient to do the (BOMSTSLO) ™ Method

(BOMSTSLO) ™ Method "Buy Off Market", using "Subject To" selling on "Lease Option"

	Seller Bought	Nov-21
	Purchase Price	$275,000
	Interest	2.65%
	Down	$9,625	3.50%
	Financed Amount .	$265,375
	Principal & Interest	$1,069
	Mortgage Ins	$156
	Prop Tax	$63
	Insurance	$93
	HOA	$0
	He takes over Loan and
	He makes Monthly Payment	$1,381

	.
	Current ARV	$300,000
	Seller Sold Subject To
	Principal Current	$252,455
	Arrears	$0
	Cash to seller	$10,000
	Real Estate Agent Fees	$15,147	6%
	** No Agent Involved **	$0
	Subject To Sale Price	$277,602
	.

	.
	Cash to seller	$10,000
	Closing costs	$3,628
	Wholesaler Fees	$0
	Marketing to find	$2,200
	His Cost to Buy	$15,828
	(He has reserves set aside of )	$5,000

	.
	He Sells On Lease Option
	Interest	8.00%
	Current ARV	$300,000
	Lease Option Increase	$330,000	110.00%
	Option Fee	$33,000	10.00%
	Principal Optionee Owes	$297,000
	He makes Monthly Payment	$1,381
	He gets monthly Rent	$2,100
	His monthly Cash Flow	$719

	.
	Property Mgr (Don't need)	None	Optionee takes care of
	Repairs (Optionee does all)	None	Optionee takes care of

	.
	His Income From Property
	Amount Underlying Loan	$233,298	When Optionee Refinances
	3 Year Principal Paydown	$19,157	Added To Profit

	.
	His Profits
	Option Fee	$33,000	Cash into his pocket
	Back End	$63,702	His Equity when Optionee Exercises Option
	12 mos cash flow	$8,624	Cash into his pocket
	12 mos cash flow	$8,624	Cash into his pocket
	12 mos cash flow	$8,624	Cash into his pocket
	Gross Profit	$122,573
	Cost to Buy	$15,828
	.
	His Net Profit	$106,745

[Timothy Borg]

Wow! That is awesome!