Updated
Click
here to download this worksheet For this session.
We will be talking about how to show a seller to do a
partial sell of their note
and
realize more than the sell price of their home in the end.
I need you to have this on
your computer in an excel file in order to go through it with you.
Simultaneous Closing Worksheet |
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The top box
on this worksheet is the only one you will modify. |
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When you
change those details the lower boxes will automatically populate. |
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For
example, you see the buyer's interest rate listed in the top box as 8%. |
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In the
Buyer's loan box below the interest is also shown as 8%. |
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Insert values in the
fields below. |
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Price of the Property: |
$240,000.00 |
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Investor's Yield: |
11.0% |
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Buyer's Cash Down: |
$24,000.00 |
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Minumum Cash Seller Needs: |
$100,000.00 |
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Buyer's interest rate: |
8.0% |
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Amount of Monthly Payments to
Seller: |
$0.00 |
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Amortization Period: |
360 |
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Real Estate Agent's Commission: |
0.0% |
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Month's until Balloon: |
60 |
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Note Broker's Profit: |
3.0% |
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The details on the left
side top will determine the loan details below. |
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The details on the right at
the top will determine how much money each individual involved in the deal
will make. |
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BUYER'S LOAN: |
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MONTHS |
INTEREST |
LOAN AMOUNT |
PAYMENT |
BALLOON |
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60 |
8.0% |
$216,000.00 |
$1,584.93 |
$205,350.89 |
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The term on the note
listed directly above indicates the number of payments due. |
interest rate comes from
the details entered above |
Loan amount is shown as
the property sale price minus the down payment from above. |
The payment is calculated
from the details on the top left. |
The balloon is set after
five years of payments and shows what the balance will be on the principle
after those payments have been made. |
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(This box shows
investor return) |
INVESTOR'S PURCHASE |
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MONTHS |
YIELD |
FUND AMOUNT |
PAYMENT |
BALLOON |
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60 |
11.0% |
$83,200.00 |
$1,584.93 |
$17,815.08 |
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Less Real Estate
Agent's Commission: |
$0.00 |
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Less Note Broker's
Profit: |
$7,200.00 |
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Net Proceeds to
Property Seller: |
$76,000.00 |
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This box shows what the seller will made. |
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SELLER'S PROCEEDS: |
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This shows the total returns tro the
seller and where the money comes from.
Notice the seller gets the minimum stated above. |
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Cash from Down
Payment: |
$24,000.00 |
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Cash from Investor: |
$76,000.00 |
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Total Cash to Seller
Now: |
$100,000.00 |
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Monthly Payments
Received: |
$0.00 |
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Balloon Payment: |
$187,535.81 |
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TOTAL CASH TO SELLER: |
$287,535.81 |
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There are
no monthly payments coming to the seller cause the
payment goes to the investor. This may
change if you change the amount of monthly payments to seller. |
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Excersise: Now go change some of the details in the top
box. Make four different examples. |
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Create
one showing low amount up front with largest overall return. |
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Create a
second showing low up front and part of the monthly payment going to seller |
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Create another
that shows more up front and no monthly |
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Create
one that shows the same up front as prior example with some monthly payment. |
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Finally create
an example that will give the seller near the exact sales price over the
total deal but giving the most possible right at the closing. |
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Note: To make these changes you only need to change the info in
the top box. "Insert values in the fields below." |
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