Catherine BellEmpowering Women to Create Financial Freedom Through Passive Income, Real Estate, and Social Impact

Slash Price, Boost Cap Rate: Real Estate Deal Hacked! #shorts

4 Jul 2026 · 1 min

Watch on YouTube

1:13

In this short briefing, the speaker walks through a real‑estate acquisition strategy that hinges on lowering the purchase price to improve the property’s cap rate and then layering a financing package that combines a conventional loan with seller‑carry financing. By reducing the asking price by $837,000, the cap rate jumps from 6.75% to 8.7% at a $2.9 M offer. The deal can still support a 75% loan‑to‑value (LTV) on a $2.1 M loan, leaving an $800,000 equity gap that the seller agrees to carry. To bridge the seller‑carry note, a two‑year buyout is proposed, allowing the buyer to service the note while preserving the economics of the transaction. The speaker emphasizes that sellers typically aim for the highest price, so convincing them to accept a haircut requires a clear financial upside for both parties.

Chapters

43 seconds it thought on it and came back and said at a 2.9 offer, here's what the economics look like. So the asking, right, going through it made the cap rate at 6.75. By going to 2.9, it makes it an 8.7. We're dropping the price $837,000. And so we're able to get a decent basis points increase. So keep going down. It'll show what we got here. Now we've got the SCR scores that make sense. We can go up to, it looks like a 75% LTV still. Okay. And get ourselves pretty good and situated, right? Because our loan amount will be like $2.1 million. We'll still need to come up with another $800,000 to cover that. And that's where we asked the seller to carry that, right? So like they, here's the thing, people sell property, they go for the most that they can possibly get. They don't try to go less. So if we don't try to go with the best that we can possibly get, it don't make sense. Right. And so on this deal, He's got to take a haircut and it's got to make sense. So if they want to sell it, that's the way they do it right there. And we do a 2-year buyout with them on the owner carry part just to get through the note, and that's it.