Why sellers assist is one of the best ROIs

[Alan Asriants]

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!

[Ryan Thomson]

@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!