Creative “Carryback”
Financing.
AIRBNB
If there is seller financing in AIRBNB, has come on the
the transaction, there are scene, and generally offers
several note terms that will impressively strong cash
reduce NCF. One is to delay flows. This is outside the
the first payment as long as scope of this article, but the
the seller will agree, perhaps reader is advised to
a year. Another is to agree to investigate it to see if it is for
interestonly or principalonly them. Start with an internet
payments. How about search.
accruing all payments until
maturity? (That’s a risky
one!) And on commercial
Conclusion
property transactions, the
GraduatedPayment Even in highlyappreciated
Mortgage (GPM) is still markets, it is still possible to
possible under DoddFrank. invest and deal with NCF.
You just have to learn how,
Improve Operations
Dealing
A new investment type,
or work with an expert who
knows. Because market
Many times when an conditions change, it is
investor purchases a prudent to factor a possible
property, it is with the 1015% rent decrease or
objective of enhancing its vacancy factor increase into
performance. This typically the calculations. You don't
involves raising rents, want to get caught short at
reducing expenses, an inopportune time. Having
increasing occupancy, and an unused credit line is also
improving management. All a good idea.
of these actions will reduce
NCF.
Good luck!
Bruce Kellogg has been
a Realtor® and investor
for 35 years. He has transacted
about 500 properties for clients,
and about 300 properties for
himself in 12 California counties.
These include 14 units, 5+ apartments,
offices, mixeduse buildings, land,
lots, mobile homes, cabins, and
churches. He is available for listing,
selling, consulting, mentoring,
and partnering. Reach him at
[email protected],
or (408) 4890131.