Why paying $1,200 more per month can be a smart move

So combined, the total monthly debt service is $5,850, which is about $1,200 more than the clean conventional scenario in one— first scenario. The trade-off is the buyer pays an extra $1,200 a month in debt service, but they don't have to come up with an additional $150,000 in capital. That $150,000 could go towards the next deal if they have it, toward value-add improvements at the facility. Or toward operating reserves. That makes the first year easier, or it just gets the deal done because they didn't have it. The seller gets $1,870 per month for 20 years. That's $224,400 in total note payments, plus their $750 at close. Over the life of the note, they receive more than the full purchase price. The full— yeah, that's the seller benefit argument that makes the structure work for both sides.