🏠

Seller Financing

You negotiate to purchase directly from the seller with owner-held financing — then re-sell on terms to a tenant buyer. Your profit comes from three places: the front (option deposit spread), the middle (monthly cash flow), and the back (equity at sale or payoff).

Deal With Seller Your purchase terms
Purchase Price The agreed price you are paying the seller for their property.
$
Down Payment to Seller The upfront cash you pay the seller at closing. Often $0–$10K in seller finance deals.
$
Monthly Payment to Seller The monthly payment you owe the seller — typically based on the loan balance at a negotiated interest rate (or 0%).
$
Balloon Length (Months) How many months until the full balance is due. This is also how long your deal runs before payoff or re-sale.
mo
Calculated
Seller's Backend (Total Cost) $97,000
Deal With Tenant Buyer Your sell terms
Sell Price The price at which your tenant buyer agrees to purchase the home from you at the end of the term.
$
NROD (Option Deposit) Non-Refundable Option Deposit — upfront money your tenant buyer pays you for the right to purchase the home.
$
Monthly Payment from Tenant What your tenant buyer pays you each month. This should be higher than what you pay the seller.
$
Final Sale Price (If Appreciated) Optional. If the home appreciates and your buyer pays more, enter that amount here. Leave at 0 to use the original Sell Price.
$
Calculated
Effective Exit Price $185,000
Profit Breakdown
Frontend (NROD − Down to Seller) $5,000
Monthly Spread $300/mo
Total Middle (Spread × Balloon) $18,000
Backend (Exit Price − NROD − Seller's Backend) $70,000
Frontend
$5K
Middle
$18K
Backend
$70K
Total Profit
$93,000
Frontend + Middle + Backend
Definition

Seller Financing is a creative deal structure where the seller acts as the bank. Instead of going through a traditional lender, you negotiate a purchase price directly with the seller, make monthly payments to them (typically at 0% interest), and pay off the remaining balance in a lump sum at an agreed balloon date. The seller gets paid over time — and you control the asset immediately.

How You Make Money
FrontThe difference between the NROD (option deposit) your tenant buyer pays you upfront and the down payment you gave the seller at closing. This is your immediate day-one cash.
MiddleThe monthly spread between what your tenant buyer pays you and what you pay the seller each month — multiplied by the number of months in the balloon period. This is your recurring cash flow.
BackAt exit, your tenant buyer pays the agreed sell price (their NROD applied at closing). You use that to pay off the seller's remaining balloon balance and keep the rest. This is typically the largest profit layer.
Equations
Seller's Remaining Balance = (Purchase Price − Down Payment) − (Monthly to Seller × Balloon Months)
Frontend = NROD − Down Payment to Seller
Monthly Spread = Monthly from Tenant − Monthly to Seller
Total Middle = Monthly Spread × Balloon Months
Backend = (Exit Price − NROD) − Seller's Remaining Balance
Total Profit = Frontend + Total Middle + Backend
Worked Example
Purchase Price $150,000
Down to Seller $5,000
Monthly to Seller $800/mo
Balloon 60 months
NROD $10,000
Tenant Pays $1,100/mo
Sell Price $185,000
Seller's remaining balance = ($150K−$5K) − ($800×60)$97,000
Frontend = $10K − $5K$5,000
Monthly spread = $1,100 − $800$300/mo
Total Middle = $300 × 60$18,000
Backend = ($185K−$10K) − $97K$78,000
Total Profit$101,000
🔑

Subject To (Existing Financing)

You take over the seller's existing mortgage payments while the loan stays in their name. You control the asset, collect rent from a tenant buyer above your PITI cost, and profit at exit when the remaining loan balance is lower than the sale price.

Stage 1 — Seller's Property Equity analysis
Seller's Asking Price What the seller is asking for the property. Used to calculate the equity spread between asking price and what they owe.
$
Debt on the Property The current payoff balance on the seller's mortgage — what they still owe the bank.
$
Equity Spread
$15,000
Asking Price − Debt
Stage 2 — What You Pay to Get In Your acquisition cost
Moving Money to Seller The amount you offer the seller in exchange for their equity — essentially what you pay them at closing to remove them from the deal. Not always required. Leave at 0 if seller accepts the debt payoff only.
$
Additional Expenses to Close All other closing costs — acquisition splits, commissions, realtor fees, title, escrow, etc. Enter the combined total.
$
Calculated
Total Cost to Acquire $9,000
This is your total out-of-pocket at closing to remove the seller from the transaction — moving money plus any closing expenses.
Stage 3 — Loan Details For backend estimation
Current Loan Balance The exact remaining payoff balance on the seller's mortgage today. This is the number used to project the balance at your exit.
$
Interest Rate on Loan The annual interest rate on the seller's existing mortgage. Used to calculate how much of each payment reduces the principal vs goes to interest.
%
Remaining Years on Loan How many years are left on the seller's mortgage. Used with the interest rate to project the remaining balance at exit.
yrs
Seller requires a balloon?
Loan must be paid in full by a set year
Expected Hold Period How many years you expect to hold this deal before your tenant buyer cashes you out or you exit. Drives the middle money and backend balance projection.
yrs
Stage 4 — Your Tenant Buyer Deal Your sell terms
NROD (Option Deposit) Non-Refundable Option Deposit — the upfront money your tenant buyer pays you for the right to purchase the home. This drives your frontend profit.
$
Monthly Lease Payment from Tenant What your tenant buyer pays you each month. This is rent — it does not reduce their purchase price. The spread above your PITI is your monthly profit.
$
PITI Payment to Bank Principal, Interest, Taxes & Insurance — the full monthly mortgage payment you make to the bank on the seller's loan. Your middle profit is the spread above this.
$
Sell Price to Tenant Buyer The agreed purchase price your tenant buyer will pay when they cash you out at the end of the term.
$
Final Sale Price if Appreciated Optional. If the home appreciates and sells for more at exit, enter that amount here. Leave at 0 to use the Sell Price above.
$
Effective Exit Price $160,000
Profit Breakdown
Frontend — NROD − (Moving Money + Expenses) $1,000
Monthly Spread (Lease − PITI) $450/mo
Total Middle (Spread × Hold Period) $16,200
Est. Loan Balance at Exit $108,000
Backend — (Exit Price − NROD) − Est. Balance at Exit $52,000
⚠️ Backend is an estimate based on the inputs provided. Actual balance at exit varies depending on original loan terms, escrow adjustments, tax reassessments, and payment history.
Frontend
$1K
Middle
$16.2K
Backend
$52K
Total Estimated Profit
$69,200
Frontend + Middle + Backend
Definition

Subject To means you acquire control of a property by taking over the seller's existing mortgage payments — "subject to" the existing financing. The loan stays in the seller's name, but you become responsible for the monthly payments. Because the equity spread is $35K or less, you often ask the seller to simply let go of their equity and sell for what they owe — sometimes with a small "moving money" payment to sweeten the deal. This is often the lowest cost way to acquire a property.

How You Make Money
FrontThe NROD from your tenant buyer minus your total acquisition cost (moving money paid to seller + closing expenses). Can be small or even slightly negative if acquisition costs run high.
MiddleThe monthly spread between what your tenant buyer pays you in rent and what you pay the bank in PITI — multiplied by the hold period in months.
BackAt exit, the tenant buyer pays the sell price (NROD applied). You use that to pay off the estimated remaining loan balance and keep the rest. The amortization math projects how much of the loan will be paid down by exit.
Equations
Equity Spread = Asking Price − Debt (triggers alert if ≤ $35K)
Total Acquisition Cost = Moving Money + Expenses
Frontend = NROD − Total Acquisition Cost
Monthly Spread = Tenant Lease − PITI to Bank
Total Middle = Monthly Spread × Hold Months
Est. Loan Balance at Exit = Amortization formula using balance, rate, remaining years, and hold period
Backend = (Exit Price − NROD) − Est. Loan Balance at Exit
Total Profit = Frontend + Total Middle + Backend
Worked Example
Debt $120,000
Moving Money $7,000
Expenses $2,000
NROD $10,000
Tenant Pays $1,400/mo
PITI $950/mo
Hold Period 3 years
Sell Price $160,000
Rate / Term 4.5% / 22 yrs
Frontend = $10K − ($7K+$2K)$1,000
Monthly spread = $1,400 − $950$450/mo
Total Middle = $450 × 36$16,200
Est. loan balance at exit (amortized, deducted in backend)~$109,700
Backend = ($160K−$10K) − $109.7K$40,300
Total Profit~$57,500
🔄

Wrap Around

The equity spread is larger than $35K so you take over the debt AND negotiate to pay the seller their equity — split across front money, monthly payments, and a final payout at exit. The loan stays in their name, your tenant buyer pays you, and you profit from the spread on all three layers.

Stage 1 — Seller's Property Equity breakdown
Seller's Asking Price What the seller wants for the property. The difference between this and their debt is their equity — the amount you're negotiating to pay them over time.
$
Debt on the Property The remaining mortgage balance the seller still owes the bank. You take over these payments while the loan stays in their name.
$
Seller's Total Equity
$75,000
Asking Price − Debt — this is what you negotiate to pay them over time
Additional Expenses to Close All closing costs on your side — acquisition splits, commissions, title, escrow, etc. Combined total.
$
Stage 2 — What You Pay the Seller Their equity payout structure
Enter any combination below. Leave a field at $0 if the seller didn't ask for it. Their backend payout is automatically calculated from whatever equity remains after front and monthly payments.
Front Payment to Seller (at closing) The amount you pay the seller upfront at closing toward their equity. Sometimes called a down payment on their equity. Can be $0 if they agreed to none.
$
Monthly Payment to Seller (principal only) A fixed monthly amount paid toward the seller's equity — separate from your PITI payment to the bank. This is principal-only, not interest. Can be $0 if not negotiated.
$
Calculated — Seller's Backend Payout at Exit
Remaining Equity Owed to Seller at Exit $54,200
Equity − Front Paid − (Monthly × Hold Period). This is what you pay the seller when the deal closes out.
Does the seller require a balloon?
Choose one — this sets your hold period for all calculations
Expected Hold Period How many years you expect to hold this deal before you sell or your tenant buyer cashes you out. Drives all middle and backend calculations.
yrs
Stage 3 — Loan Details For backend estimation
Current Loan Balance The remaining payoff balance on the seller's existing mortgage. Used to project how much will still be owed at your exit date.
$
Interest Rate on Loan The annual interest rate on the seller's existing mortgage. Used with the remaining term to project the balance at exit.
%
Remaining Years on Loan How many years are left on the seller's mortgage. Used with the interest rate to project the remaining balance at your exit.
yrs
Calculated
PITI Payment to Bank (est.) ~$578/mo
Estimated from loan balance, rate, and remaining term. Enter your actual PITI in Stage 4 if you have it.
Est. Loan Balance at Exit $97,400
Stage 4 — Your Tenant Buyer Deal Your sell terms
NROD (Option Deposit) Non-Refundable Option Deposit — the upfront money your tenant buyer pays you for the right to purchase the home.
$
Monthly Lease Payment from Tenant What your tenant buyer pays you each month. This is rent — it does not reduce their purchase price.
$
Actual PITI Payment to Bank The exact monthly mortgage payment you make to the bank — Principal, Interest, Taxes & Insurance. If you don't know it yet, the estimate in Stage 3 will be used.
$
Sell Price to Tenant Buyer The agreed purchase price your tenant buyer will pay you when they cash you out at the end of the term.
$
Final Sale Price if Appreciated Optional. If the home appreciates and sells for more at exit, enter that amount. Leave at 0 to use the Sell Price above.
$
Effective Exit Price $220,000
Profit Breakdown
Frontend — NROD − Front to Seller − Expenses −$500
Monthly Spread (Tenant − PITI − Monthly to Seller) $722/mo
Total Middle (Spread × Hold Period) $34,656
Est. Loan Balance at Exit $97,400
Remaining Seller Equity Owed at Exit $50,000
Backend — (Exit Price − NROD) − Loan Balance − Seller Equity $72,600
⚠️ Loan balance at exit is an estimate based on inputs provided. Actual balance varies with original loan terms, escrow, and payment history.
Frontend
−$500
Middle
$34.7K
Backend
$72.6K
Total Estimated Profit
$106,756
Frontend + Middle + Backend
Definition

A Wrap Around is used when the seller's equity spread exceeds $35K — too much to simply ask them to walk away. You take over the existing mortgage AND negotiate to pay the seller their equity over time across up to three layers: a front payment now, optional monthly payments toward their equity, and a final payout at exit. The loan stays in their name throughout. You profit from the spread between what your tenant buyer pays you and what goes out to both the bank and the seller.

How You Make Money
FrontNROD from your tenant buyer minus the front payment you made to the seller at closing and your closing expenses. Can be negative if front to seller + expenses exceeds the NROD — that negative carries into total profit.
MiddleMonthly spread between what your tenant buyer pays you and your total monthly outgo — PITI to the bank plus any monthly payment to the seller toward their equity.
BackAt exit, tenant pays the sell price (NROD applied). You pay off the remaining loan balance AND the seller's remaining equity. Everything left is yours. This is where Wrap Arounds build serious wealth on larger equity spreads.
Equations
Seller Equity = Asking Price − Debt
Remaining Seller Equity at Exit = Seller Equity − Front Paid − (Monthly to Seller × Hold Months)
Frontend = NROD − Front to Seller − Expenses
Monthly Spread = Tenant Lease − PITI − Monthly to Seller
Total Middle = Monthly Spread × Hold Months
Est. Loan Balance at Exit = Amortization formula using balance, rate, remaining years, and hold period
Backend = (Exit Price − NROD) − Loan Balance at Exit − Remaining Seller Equity
Total Profit = Frontend + Total Middle + Backend
Worked Example
Asking $185,000
Debt $110,000
Front to Seller $10,000
Monthly to Seller $300/mo
Expenses $2,500
NROD $12,000
Tenant Pays $1,600/mo
PITI ~$595/mo
Hold Period 4 years
Sell Price $220,000
Seller equity = $185K − $110K$75,000
Remaining seller equity = $75K−$10K−($300×48)$50,600
Frontend = $12K−$10K−$2.5K−$500
Monthly spread = $1,600−$595−$300$705/mo
Total Middle = $705 × 48$33,840
Est. loan balance at exit (amortized, deducted in backend)~$98,100
Backend = ($220K−$12K)−$98.1K−$50.6K$59,300
Total Profit~$92,640
⚡

Wholesale Deal

You get a property under contract, then sell that contract to an end buyer for more than you have it under contract for. The difference — minus any expenses — is your profit. No repairs, no closing, no holding costs.

Deal Numbers 3 inputs, that's it
Contract Price with Seller The price you locked up in your purchase contract with the seller.
$
Additional Expenses Optional. Marketing, JV splits, acquisition fees, admin costs. Leave at 0 if none.
$
Selling Price to End Buyer The price the end buyer is paying you for the contract assignment.
$
Your Net Profit
$15,000
Selling Price − Contract Price − Expenses
Pro Investor Analysis
Maximum Allowable Offer (MAO) ARV × 70% − Repairs
The MAO is the maximum price a professional rehabber will ever pay for a deal. Knowing it tells you instantly where to focus your marketing efforts.
After Repair Value (ARV) What the property will be worth after all repairs and renovations are completed. Pull comparable sales in the area to determine this number.
$
Estimated Repair Costs The total cost to fully repair and renovate the property to retail condition. This is what the end buyer (rehabber) will spend after they purchase from you.
$
Calculated at fixed 70%
MAO = (ARV × 70%) − Repairs $75,000
Your Selling Price vs MAO
🎯
Enter your numbers to see your marketing direction
The MAO tells you whether professional investors will even consider your deal — and where to focus your marketing energy.
Definition

Wholesaling is the simplest creative deal strategy. You get a property under contract at a below-market price, then sell (assign) that contract to an end buyer — typically a cash investor or rehabber — for more than you locked it up for. You never actually close on the property or take title. You're selling your right to purchase it. Quick in, quick out — no holding costs, no repairs, no bank involved.

How You Make Money
ProfitThere is only one profit layer in wholesaling — the spread between your contracted price and what the end buyer pays, minus any expenses you incurred along the way (marketing, acquisition fees, etc.).
Equations
Gross Spread = Sell Price to End Buyer − Contracted Price with Seller
Net Profit = Sell Price − Contracted Price − Additional Expenses
Worked Example
Contracted Price $85,000
Sell Price $100,000
Expenses $2,000
Gross spread = $100K − $85K$15,000
Net Profit = $15K − $2K expenses$13,000