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Spreadsheet (BOMSTSLO) ™ Method Buying Subto (Subject To) Selling Lease Option Wow
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 |