High Equity Examples Quiz

Which of the following are valid possible acquisition deal structures when the seller has a free and clear property? Check ALL correct answers. *

Cash

Seller Financing

Subject-To

Equity Partnership

Private or Hard money loans

Lease with Option

Trust Beneficiary Replacement

When talking to a seller and the MAO formula just won't work, it's time to thank them for their time and move on. *

True

False

"Lease Sandwich" is a metaphor. If the "bread" is the lease we use to acquire the property and another lease to dispose of the property, what is the meat in the middle? *

Can I get a vegan option here?

You and your profit

The seller and their equity?

Hint: The “meat” is what is connected to both your seller and your buyer.

Where can you get some of your profit in a lease sandwich? There is only one completely correct answer. *

The buyer's ATM

The seller's bank

The buyer's option payment

Net cash flows

The buyer's ATM AND the seller's bank.

The buyer's option payment AND the net cash flows.

What are we "wrapping" in a mortgage wrap? *

The seller's underlying first mortgage.

The home exterior. The house is older and probably didn't get wrapped in the best exterior sheathing.

All of the leases on the property need to be wrapped in plastic and placed in a safe deposit box. Or a locker at the bus terminal if you can't afford the SD box.

Really? You need a hint on this one? This quiz question is just another way of describing the mortgage wrap for you. You’re welcome.

Why do you want to make the underlying mortgage payment directly to your seller's lender each month? *

It's required by law in a subject-to.

So you can skip one or two if you're struggling with cash flow.

To make sure it gets paid.

How would your exit plan impact your structure on seller financing? *

Aw man, do we have to know the exit strategy already?

If flipping, the loan will be shorter, like perhaps 1 year.

Wait, what? Do I get to pick the loan structure in a seller finance?

Always plan ahead and on a quiz you usually don’t answer a question with a question. And that leaves answer 2! If you are leasing the property as an exit, you might ask for a 2-5 year term with a balloon. You’ll have to pay them off then by selling or refinancing. It’s unlikely the seller will give you 30 years to pay them back.

man that’s a lot of questions!

The questions and their answers (at least the correct answers) are another way to get you to interact with the information. Note that you don’t have to achieve a passing grade to continue. So – no pressure.

Show Me The Money: How to Fund Your Real Estate Deals

High Equity Examples Quiz

man that’s a lot of questions!