HI Kate,
Forward this to your Uncle. Yes, we are new company and happy to take on partners if there is interest, but in general, we are presenting this program to bankers and brokers to show them the added advantages this program will prove to be in moving properties for more money, more quickly over the old mortgage system.
In the case of the property you are trying to sell, we are able to help reduce several hurdles.
Down Payment: Reduced 80%
To begin, the dowpayment is reduced to 5% or just $37,000 rather then today's typical 30% for commercial loans $220,000. This should dramatically expand the number of qualified buyers.
Monthly: Reduced 30%
The monthly payments for the buyer will now be just $3,660 versus the $4,550 of a typical 30 year mortgage for $750,000. This will demonstrate the business & properties over-head costs to be significantly more affordable and allowing you to show a greater monthly & annual profit margin for the business to new buyers.
4 Year Commitment vs. 30
The best part for a new buyer is that they are making a 4 year commitment rather then a 30 year one so if at the end of that time, things are still not working out, they can walk away, free and clear.
Equity
If they do decide to keep the business, the monthly is sitll just $3,300 a month or 35% less then a 30 year mortgage. They will also have a 15% equity in the property. The final downpayment would be $50,000. Again, much easier to come up with over 5 years rather then the typcial $200,000 down payment today.
Seller: Equity, Petty Cash, Faster Sell, Time
The best part for you is that you will be able to find a buyer much faster and probably for more moeny then you can under today's typical financing options. It will buy you time with a good paying leasee/buyer while the market clears this climate of low prices and allows you to resell in 4 years from now in a much better market. You get about $200,000 in petty cash today.
Most mortgage brokers make the mistake of thinking this is an interest only loan or another subprime loan, but it is not. Its the equivelent of an auto lease loan that pays down the principle over 4 years leaving the buyer buying the item must faster and doing so with just 2 small down payments and smaller monthlies then a typical 30 year, real estate loan.
Here's the break down in the numbers:
$750,000 (Price=*B5 on spread sheet)
$187,000 (First Term loan*B17, paid off over 4 years*B10 & B20)
6.5% (Interest Rate *B6 & B19)
$3,660 (Monthly for 4 years *B21)
$37,000 (Downpayment *B7 & B18)
You would get to keep this $180,000. This would leave you to finance your 2nd house. Put $100,000 down and your mortgage would be about $800 a month.
In the 5th year
$563,000 (2nd Term Loan: remaining amount of loan *C17)
5% (interest rate during 4 years 1st Term Loan was paid. Change the number in *B6 to 5 for 5%)
$112,000 (Interest over 4 years for 2nd Term Loan. *B26)
$675,000 (2nd Term Loan & Interest combined Press 'Y' at *B13)
$50,000 (Down Payment *B8 & C18)
$3,388 (Monthly *C21)
Your Uncle will get his original $325,000 plus $112,000 in interest for a grand total of $436,000 or 30% in 4 years or 8% interest per year.)
You can take $100,000,
John gets his $25,000
The buyer getrs the franchise for free.
Print this out and then look it over as you study the spread sheet. Its pretty simple.
As for the other attachments, one is an endorsement letter from a Credit Union that loves our product. The other is his bio. The 3rd is a Power Point presentation he gave on the product and last is a summary I wrote up. And then of course, the spread sheet.
As for your uncle, it would allow him to sell his properties for more money in todays market and do so more quickly in rather then having to reduce the price or wait a couple years to sell properties.
We are looking for more clients to use as demonstrations and so happy to provide them special bonuses for that such as referral fees, regional exclusives, partnership oppertunities.
