Case Study (real case)
This example is with my old property I had for 15 years and sold it recently. The property with 4 units is located in Bakersfield, CA. I sold this property for $260,000.
Buyer purchased the property with 20% down and paid 2% in closing cost, so buyer invested $57,200. Buyer got a great loan for 5.5% rate for 30 years, the monthly payment is $1,180.
Let’s look at the figures, assuming no vacancies:
|Landlord policy insurance||$150|
|Property Management company 10% of rents||$260|
|Gardener and cleaning||$125|
|Total Monthly Profit||$110|
What could happen if the buyer purchased a note for the same investment, $57,200?
|Note Term||360 months|
Let’s compare both investments
|Income Property in Bakersfield||Proposed Note|
|Yearly Return on Investment (ROI)||2.31%||7.98%|
|Dealing with tenants||Yes||No|
|Unplug toilets at 11:00 pm||Yes||NEVER!!!!|
What can you do?
If you are ready to invest in a note please contact us to get you a better investment than an income property. If you already own an investment property we offer a variety of solutions to convert it to your investment a better investment, ask us for our Seller Financing program.
Please call us at 1-877-668-3790