The Four Pieces Every Scalable Terms Deal Actually Needs

There are 4 pieces that come to a real estate transaction. Now, not all 4 of these pieces are needed for every single one of our deals, but when you bring all these 4 pieces together, you as a real estate investor can grow and scale your portfolio, especially in the commercial and multifamily space. So I'm going to walk you through an amazing deal that all came together because all 4 of these pieces simultaneously Brought together an amazing creative financing deal. I'm Zach Beach. I'm the CEO of Smart Real Estate Coach, and we've been buying and selling real estate on terms or creative financing for well over a decade now, actually 12 years, and have built an amazing team that has over 104 years of real estate experience. Now, I've been able to pull on each and every one of those amazing coaches amazing leaders in our community, which has led me to be able to successfully not only do hundreds upon hundreds of creative financing deals, but also to be able to start tapping into some multifamily transactions as well, which leads me to this video here with you here today. So this particular property that we're going to walk through is a 3-unit building in Meriden, Connecticut, which is in central Connecticut. This is a property that I personally put together and I want to share with you here today. This is also one of 2 pieces of a transaction that I put together with the exact same seller. I put together another video on a 5-unit building that's right down the road from this as well, and we were able to really put together an amazing transaction. So component number 1, knowing a seller and the seller's current challenge, and the current challenge needs to be solved by a real estate transaction as far as creative financing, right? So this particular seller is a tired landlord. He owned 37 units. We ended up buying 8 of those units from him on a 0% interest rate and seller financing, right? So we have the seller that has a challenge right now and somebody that we can absolutely solve their problem. So that's number one. And then the second component that we're going to talk about here today It's actually a wholesaler. A wholesaler came to the forefront and actually brought me this transaction, then made the handoff to the seller. And the good thing about this particular wholesaler is he understood creative financing and actually is the one that brought me the 0% interest rate. How did I find this wholesaler? Well, I'm constantly involved in local Facebook real estate investment groups, and I'm always posting exactly what I'm looking for and any of my successes. So that way I go ahead and attract these types of people. Again, he's the one that brought me this very low down payment, 0% interest rate in 84-month terms. Needless to say, I'm going to continue to work with him. And then the, the third component, right, is the private money or what I would consider a capital partner. So I ended up finding this capital partner who is a business owner, entrepreneur, and he's looking to move some of his money into real estate investments. Now, these real estate investments, he doesn't want to operate. So I showed him exactly what we were doing here today and was able to raise a very actually small amount of money because most of the transactions that do require some private capital aren't massive amounts of transactions, especially in these small to multifamily space, which is absolutely growing right now when it comes to seller financing exit strategies. So with that being said, so that's component number 3. And of course, the 4th component then is a property manager. Now, the property manager, I wouldn't acquire multifamily properties to run personally. That's just, I don't have the time or the background or the effort to really want to do that. I want to be able to go get another transaction, another transaction, be the real estate investor, So I was put onto a great property management company local into that area. So as those 4 components came together, this is what created a smooth real estate transaction. I'm going to walk you through some slides here of exactly how this deal was put together and the projected income from this, because you're going to want to stick around all the way to the end because these deals are life-changing for most. And honestly, if you continue to stack these types of deals, year in and year out, you're going to be able to create an amazing portfolio that can sustain a lifestyle for many, many years to come. Not sure where to get started? Go to smartrealestatecoach.com/getgoing for free books, strategy calls, and a whole bunch more. We're going to help you get going the wicked smart way. We've been after this for over a decade doing exactly that. 85 Goodwill Ave in Meriden, Connecticut. We ended up buying it for $500,000, which was probably retail price at that Timeframe. Cash that was invested in this deal was roughly $37,000. Monthly cash flow on this property, day 1, $1,670. So cash-on-cash returns roughly 53%. I mean, you can't find these deals unless you're doing creative financing strategies. So again, quick snapshot. We bought the property at $500K. We did a sub-2 wrap mortgage. I'm going to break that down a little bit further. We closed it back on 12/3/25. Cash invested was $37,000. Cash flow day 1, $1,670. So this is how we bought. So if you watched the previous video on 51 Griswold Street, the same challenge popped up. So we went to go acquire this property and we went and ran title, meaning we went to make sure there was no additional liens on this property. What we found out was that the property was not free and clear, although it was originally stated to be free and clear. So I went to the seller and said, look, I really would like to still purchase this property. We've already gone down this road for quite some time. And the terms that you originally agreed to, which was say $500,000, 0% interest rate for 84 months, I want to keep in place because that's what makes this a deal. But of course we have a lien. So what we end up structuring is known as a wrap mortgage. So we end up creating a new loan That included the seller carry and the original subject to the existing lien on the property, which he had original mortgage. And we then created a $2,000 a month payment that was at a 0% interest rate. So although I am paying on the original loan, which of course has an interest rate, we're being credited the entire amount. So here's what it looks like. We bought it for subject to $162,000. Seller carry was $302,000 and cash at close was $35,000 again, plus some closing costs there as well. So this is what the wrap mortgage note looks like. $465,000 at a 0% interest rate. Monthly payment is $1,300 per month. So it wasn't $2,000, sorry, $1,300 per month, 84-month balloon. Here's where it continues to break down, right? Underlining loan was $1,101. And then to keep it the exact same original terms of the agreement, we're going to pay the seller an additional $199 per month. So what I do is as the rent comes in and it's collected by the property management company, I then have access to the original loan. I pay that loan and then I wire the seller the other $199. So escrow and taxes are $700 per month. So we get a balloon in 84 months because remember, $1,300 every single month is coming off that balance of $465,000. We have a balloon due of $355,000. As you can see, the amount of equity we're building into this deal is enormous. And what truly makes this deal is the 0% interest rate and the timeframe. And of course, the cash flow on here as well. So this is what it looks like, right? So cash in the deal, $35,000. We had an assignment fee to the wholesaler for $10,000, title and settlements. And this was pulled directly from the HUD transaction coordinator, government recordings, tax and rent prorations, which equaled out to $37,601. Of course, the tenant deposits and utility credits were given to us. Originally here at closing, so that that continues to line up. And if you actually look at the security deposits, we had nine thousand four hundred and thirty-three, and water and sewer reparations worth three thousand one hundred and sixty. Again, this was sourced directly from the HUD statement. So what brings us to the cash flow? Underlining mortgage one thousand one hundred and ten, property taxes payment to seller. Insurance, property management, vacancy and reserves, and CapEx, which brings us to a total of $3,102 for expenses. And we're creating a— our gross monthly rent is $4,777. That's 777. And that's not even at pro forma, meaning like there's the ability to increase rents here over time as well. But walking into this deal day one, this is fully This was fully rented walking into this day one, $1,670 in cash flow. The types of deals that I'm consistently looking for in that small multifamily space are working with tired landlords, properties that need slow turnover, meaning that they're fully rented right now, but eventually each tenant will eventually move out. We improve the unit, raise the rent, but it's not a full value add. And we're looking for cash flow day one and large amounts of principal paid out. This is an absolute wealth play when it comes to this particular strategy for me, my team, and my family, because we have the awesome rent-to-own 3-payday strategy to create the income now, cash flow, and the equity in those deals. And those are used for more income and lifestyle. This is absolutely a wealth play and you can do it here yourself as well. So this is what the returns look like. Annual cash flow is about $20,000 based on today. Cash-on-cash return is roughly $37,000 or $53,000. And the control ratio is 13.3x. So as you can see, an amazing transaction. And did I mention that none of the capital that I brought to the table was my own money? This is how you get into these deals with No money down. So here's what these look like, right? Day 1 position. We needed no bank loans when we entered the property. We automatically had cash flow and we're building in a significant amount of equity at this timeframe. Right. So why does this deal actually work? Well, there's no banks involved, so we didn't have to go through that entire scenario. Cash flow day 1, tenants already in place, controlled asset. Right. We don't have to go ahead and qualify for. And when you start looking at deals like this, the structure is what did the heavy lifting. Now, again, I can thank that wholesaler, but what this deal really was was an accumulation of networking consistently, building a team, talking with private investors, making sure we had management in place, and continuing to look to solve sellers' problems. So if you want to continue to work with and start doing deals like this, just go ahead and book an advisory session with our team because we can share with you how we're buying these single-family properties and selling them on rent-to-own and creating that multiple streams of income. But we can also share with you how to be out there buying these smaller multifamily cash-flowing assets directly from tired landlords, mom-and-pops, to create a significant amount of wealth While you're doing that as well. It's smartrealestatecoach.com/advisorysession. Make sure you go ahead and subscribe to our YouTube channel. Every single Sunday we are putting out these deal structure videos. We are doing these consistently in the trenches, not only in our local markets, but with our community members all across the country. So these are live deals happening in today's market.