In this episode of Deal Structure Sunday, host Zach Beat interviews Roger, a Georgia‑based associate, about a recently closed 48‑month sandwich lease transaction. The deal originated from an expired MyPlusLeads listing that Roger’s virtual assistant (VA) forwarded to him. After initial negotiations, the purchase price was driven down from a seller’s asking $450,000 to a final $415,000. Roger then listed the property for $460,000, securing a $45,000 markup. The deal’s cash flow was broken into three “paydays”: a $9,000 upfront down‑payment, a $1,209 second payday from a $31 monthly spread over the term, and a $38,337 final payday comprising principal paydown and the remaining markup, totaling $59,546 profit. Payment details include a $20,000 total down‑payment staged over several months, a monthly seller payment of roughly $2,010, and a monthly buyer collection of $2,041. The contract was signed on August 27, 2019, and the property was held for almost a year, longer than Roger initially expected. Roger reflects on his mistaken assumption that the property could be flipped within 1‑2 months, acknowledging Zach’s advice to be patient. The conversation wraps with a reminder to watch more Deal Structure Overtime episodes and a plug for the Smart Real Estate Coach Academy.
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Hey everybody, it's Zach Beat, smartrealestatecoach.com. Welcome to another Deal Structure Sunday. Today I have Roger from Georgia. He is a starter associate in our associate community and has been with us for— what has it been, over a year now, Roger?
I'd say about almost 2 years, man.
Almost 2 years. Oh, I feel like I've known you forever, Roger. Let's, uh, let's dive into your most recent deal here. Um, so, um, what was— so as we dive in this deal, what was the source type of this deal? Like, where'd you find it?
So this was an expired, um, from My Plus Leads.
Okay.
Source. Yep.
Did you attract it by doing outbound calls, ringless voicemail? How did you end up— how did it get into your funnel?
Oh, so this, um, this is my VA. Um, so my VA forwarded me this lead and, and I followed up. So it came straight from my VA. It was a very good one.
Perfect. Love it. If you guys don't have a VA, I highly recommend you get a VA. Let them do the front-end work. All right, uh, deal type. What type of deal are we working on here?
This is a sandwich for 48 months.
Okay, 48-month deal. All right, so purchase price, what did we buy the property for?
So we bought the property at, um, the final price. Initial price was $430,000. Okay, yeah, initial price was $440,000. $430,000. She wanted $450,000 initially.
Got it. And by the time you took this thing under contract, and we'll handle all the nuances in the Uh, in the deal structure over time. But what was the, the final purchase price you bought it for?
$415,000 is the final purchase price.
$415,000 is the final price. Well, I cannot wait to dive into how you got $35,000 off of this deal. All right, so we got a sandwich, 48 months, $415,000 purchase price. Um, so we take it to market. What did you sell the property at?
Uh, we sold it for $460,000. Yeah.
Okay, $460,000. So then what was your payday number 1?
The payday number 1 was, um, $9,000.
Okay, $9,000. Now did you structure any other, um, deposits over time?
Oh yeah, um, so the eventual down payment will be $20,000. Starting January, there will be $250 a month towards the down payment. That's $4,500. And then there will be another $3,500 in January '22, and June '21, another $3,000. So that gets us to $20,000 down payment.
Perfect. So $20,000 payday 1 there. All right, so then you end up taking the property. Um, the— how much is the total that you're making the payment to the seller for?
So that's, uh, $2,000, about $2,000, and, um, I think it's $2,010 approximately.
Okay. And then what did you end up collecting for a monthly payment from the buyer?
Yeah, the margins on this one are real tight. Um, And we'll explain it later, but, uh, it was, uh, not much. It's $2,041, which was where the payments were initially, um, for this, uh, property.
Yeah, no, that's 100% okay. So I always look at this and don't say like you can't base everything on one payday. It's the overall deal in which that matters, and we'll hit the total profits at the end here. All right, so you get up on a $31 spread Uh, so over the term, uh, how much is your total payday 2?
Um, payday 2 is $1,209.
Okay.
Yep.
So you got $1,200 payday 2. Um, so let's dive into the backside now when this actually gets cashed out. Uh, what, what's your payday 3 here? So, um, looks like Based on your numbers here, it's about a $45,000 markup in purchase price.
Yep.
How— what are you getting for principal paydown per month?
Uh, $383, $343. So I'm calculating 39 months where that's about where we are, um, for it to go to full term. Um, so it's around $13,377.
Um, got it.
Okay, yeah, yeah.
And then you're gonna subtract, uh, the payday 1, right?
That is $9,000. Yep, yep.
So now you get a total payday 3 of how much?
$38,337.
Beautiful. So, uh, this 48-month sandwich lease, um, terms deal here is a total profit of how much for all 3 paydays?
$59,546. And this is a really— this is— I actually had the price, the final price I had was $20,000 less. That's the final advertised price that I was going with, just because I had, you know, some issues with the property. And so, I had a buyer who came in at the $460,000 when it was priced at $460,000, they left and came back, so I didn't change the price for the person at that point. So I just kept it then, and so it worked out well for me because I gained that $20,000 back. So it worked out to be a decent deal. Yep.
Yeah, and just to throw out a A rope here. This property you originally took under contract how long ago?
So I just looked this up, um, almost a year. August 27th, 2019, and today is August 21st. Okay, so, okay, it was signed. The contract was signed.
The sale contract was signed on August Okay, and what did you do, Roger, that I told you not to do?
Well, so Zach, yeah, I was looking at the markets. I know the house is in a great area, and, um, I was like, man, I can sell this stuff in 3 months the most, tops. I figured in a month I'll get rid of this place. So I was like, yeah, I'm taking it. You said, well, I don't think you should. go ahead and commit to the monthly payments, I was like, I don't think it's gonna go more than 1 or 2 months. And so I ventured out and you were right.
Oh, I hate to smile and laugh about it, but now that it's done, I'm sure you get a huge relief there.
Yes, I can laugh now, man, because it's gone and it's in good hands.
All right, well, well guys, thank you for showing up for another Deal Structure Sunday. Roger was able to acquire a 48-month deal here which he's renegotiated and committed to. So there's been some huge ups and downs with this property, but the total, uh, 3 paydays are gonna be just under $60,000. So if you want more from Roger on this deal, head on over to the Smart Real Estate Coach Academy. Fire up this week's episode on Deal Structure Overtime. You can certainly learn more about our Smart Real Estate Coach Academy in the series Deal Structure Overtime on smartrealestatecoachacademy.com.
