E Krall St - E Krall St

My company is Arizona Seller Financing. I partner with investors who can qualify for traditional bank financing to buy properties here in Arizona. I partner to purchase homes for our “U-pick seller financing program”. I have been partnering with investors on these seller financing investments since 2009. I have another investment ready to go and am seeking a seller financing investing partner for this property.
My licensed mortgage company is constantly screening buyers who cannot qualify for traditional financing but will be able to in three to five years. We have another buyer ready to go who wants to use our seller financing program to purchase this home. The buyer has been pre-approved for our seller financing program, has a 20% down payment and is ready for us to make an offer to purchase this property. The buyer has agreed to a 10% increase in price in exchange for our company purchasing the property he chose and then selling to him with seller financing. In addition to the 10% price increase our seller financing buyer has agreed to a 7.5% interest rate on the seller financing we are providing.
Details of this investment:
$120,210 5-year profit ($57,984 from cash flow income + $95,975 from price increase - payoff differential) ~ spreadsheet attached
$750,000 purchase price
- $187,500 down payment needed from investor
= $562,500 financed @ 6.75% interest rate.
(you, as the investing partner, qualify for this mortgage financing through my licensed mortgage company)
$825,000 sales price to seller financing ($75,000 price increase already agreed to in writing)
-$165,000 seller financing buyer down payment (this $165,000 down payment is returned to the investor resulting in $22,500 net investment which we split equally = $11,250 each)
=$660,000 seller financing provided to buyer
Monthly cash flow
$4,615 seller financing buyer monthly P&I payment @ 7.50%
-$3,648 investor mortgage monthly P&I payment @ 6.75%
= $966 monthly cash flow
INVEST YOUR CREDIT, NOT YOUR CASH
What we provide to earn our partnership interest:
- We are a licensed mortgage company to ensure Dodd-Frank compliance (meaning we verify the buyers ability to pay and conform to all lending laws)
- We provide pre-screened buyer with significant down payment funds (verified)
- We help the buyer who needs seller financing locate the property (so they get the home of their choice)
- We handle all paperwork to set up the transaction (through our licensed mortgage and real estate companies)
- We manage the investment from day 1 to final payoff
- We handle all tax filings and monthly accounting
Why we partner with investors:
Seller financing reduces investment risk because our seller financing buyer is providing a 20% down payment; they are taking the initial investment risk. We buy multiple homes per month for our U-pick seller financing program. Like any real estate investment firm, we need to continually raise capital to keep acquiring properties. We have found cash investors seek a higher return than the rates offered by banks for traditional mortgages. Therefore, we seek what we call “Credit investors” to replace our traditional cash investors. Utilizing a traditional mortgage to leverage our seller financing investment increases our investment returns by 2+% annually. On a $300,000 property, this results in additional profits of $30,000.
- Low Risk
- Use of credit for low to ZERO net investment
- Investment property management at no cost with our partnership investor program
If you don't like this investment contact me and I will notify you when new seller financing investments become available