Updated 3/21/06

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

 

 

The top box on this worksheet is the only one you will modify.

 

 

 

When you change those details the lower boxes will automatically populate.

 

 

For example, you see the buyer's interest rate listed in the top box as 8%. 

 

 

In the Buyer's loan box below the interest is also shown as 8%.

 

 

 

 

Insert values in the fields below.

 

 

 

Price of the Property:

$240,000.00

 

Investor's Yield:

11.0%

 

 

Buyer's Cash Down:

$24,000.00

 

Minumum Cash Seller Needs:

$100,000.00

 

 

Buyer's interest rate:

8.0%

 

Amount of Monthly Payments to Seller:

$0.00

 

 

Amortization Period:

360

 

Real Estate Agent's Commission:

0.0%

 

 

Month's until Balloon:

60

 

Note Broker's Profit:

3.0%

 

 

The details on the left side top will determine the loan details below.

 

The details on the right at the top will determine how much money each individual involved in the deal will make.

 

 

BUYER'S LOAN:

 

 

MONTHS

INTEREST

LOAN AMOUNT

PAYMENT

BALLOON

 

 

60

8.0%

$216,000.00

$1,584.93

$205,350.89

 

 

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.

 

 

(This box shows investor return)

INVESTOR'S PURCHASE

 

 

 

 

MONTHS

YIELD

FUND AMOUNT

PAYMENT

BALLOON

 

 

60

11.0%

$83,200.00

$1,584.93

$17,815.08

 

 

 

 

Less Real Estate Agent's Commission:

$0.00

 

 

 

 

 

Less Note Broker's Profit:

$7,200.00

 

 

 

 

 

Net Proceeds to Property Seller:

$76,000.00

 

 

 

 

 

 

 

 

 

 

This box shows what the seller will made.

 

SELLER'S PROCEEDS:

 

This shows the total returns tro the seller and where the money comes from.  Notice the seller gets the minimum stated above. 

 

 

 

 

Cash from Down Payment:

$24,000.00

 

 

 

 

Cash from Investor:

$76,000.00

 

 

 

 

Total Cash to Seller Now:

$100,000.00

 

 

 

 

Monthly Payments Received:

$0.00

 

 

 

 

Balloon Payment:

$187,535.81

 

 

 

 

TOTAL CASH TO SELLER:

$287,535.81

 

 

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. 

 

 

Excersise: Now go change some of the details in the top box.  Make four different examples.

 

 

Create one showing low amount up front with largest overall return.

 

 

 

 

Create a second showing low up front and part of the monthly payment going to seller

 

 

 

Create another that shows more up front and no monthly

 

 

 

 

Create one that shows the same up front as prior example with some monthly payment.

 

 

 

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.

 

Note: To make these changes you only need to change the info in the top box. "Insert values in the fields below."