Skip to content
×
Try PRO Free Today!
BiggerPockets Pro offers you a comprehensive suite of tools and resources
Market and Deal Finder Tools
Deal Analysis Calculators
Property Management Software
Exclusive discounts to Home Depot, RentRedi, and more
$0
7 days free
$828/yr or $69/mo when billed monthly.
$390/yr or $32.5/mo when billed annually.
7 days free. Cancel anytime.
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
House Hacking
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated almost 2 years ago on . Most recent reply

User Stats

1,334
Posts
885
Votes
Alan Asriants
  • Real Estate Agent
  • Philadelphia, PA
885
Votes |
1,334
Posts

Why sellers assist is one of the best ROIs

Alan Asriants
  • Real Estate Agent
  • Philadelphia, PA
Posted

Whether you are new to investing or are seasoned, utilizing sellers assist is an excellent way to leave more money in your pocket without much effect on your mortgage.

For example:

You are buying a home for $400,000. Instead of buying it at that price, ask the seller to increase the price to $410,000 and offer a $10k assist at closing.

The seller gets the same net price at closing, and you pay 10k less at closing. Win-win

Increasing your purchase price by 10k really only changes your mortgage by $50/m and approximately 500-1000 extra at closing (depends on your state fees, transfer taxes, etc)

So really you are saving $10k today for 50/m and about 750 at closing.

If you do the math, it would take you about 15.5 years to pay that 10k you put towards your loan.

The 10k you have in your pocket today is worth way more than the 10k 15.5 years from now. Use that money to renovate, or as a portion of a down payment for the next property. Leveraging sellers assist saves you tons of money, and gives you a great ROI.

Personally I have purchased 7 properties and saved 50k in sellers assist. I used this money towards renovation and other properties

The best part, it’s TAX FREE. That means the 10k you save is 10k.

If you’re an agent buying for yourself, make the tax free income, not the commission (approval from broker required)

***Property has to appraise for the higher value***

Hope this helps!

business profile image
Alan Asriants - New Century Real Estate
5.0 stars
59 Reviews

Most Popular Reply

User Stats

1,407
Posts
1,322
Votes
Ryan Thomson
#1 House Hacking Contributor
  • Real Estate Agent
  • Colorado Springs, CO
1,322
Votes |
1,407
Posts
Ryan Thomson
#1 House Hacking Contributor
  • Real Estate Agent
  • Colorado Springs, CO
Replied

@Alan Asriants I encourage clients to leverage this whenever possible. It makes so much sense for all the reasons you outlined. I'd rather have the cash now!

business profile image
House Hack Colorado Springs
5.0 stars
38 Reviews

Loading replies...