Structuring Investors Returns

[La'Terrius Campbell]

Portfolio of 2 buildings on the same lot with 6 units each (12 units total) at a price of 770K

owner financing / seller carry via master lease-to-own contract is available!

the terms are 25% down payment, with a master lease of $3,930 a month = equal to 75% of the current NOI (equivalent to 20 years amortized, 3 years balloon, with 5% interest rate)

CAP RATE in this area is 8% in this area.

$195,500 (25% down)

$770,000 (Purchase Price)

$62,895 (NOI)

My Questions on this!

1. What’s lease-to-own contract?

2. Say two other investors put money up for the 25% down, $96,250 each. What return would you offer the investors for the buyout agreement.

Is there anything in this post, you all would negotiate differently?