How to profit on overpriced listings

AKA-Making friends with new Brokers PS- Don't mean to pick on this particular listing. I'm sure it's great. It was chosen because the cap rate is below current market interest rates.

Hey Casey, I want to make sure I understand your approach here. Please feel free to correct me where I misunderstood the process. Step 1) Acquire the asset with seller financing (lets say 75%+). The interest rate in this deal is where the value is created - let's stick with your example of 3% and 10-year term. Step 1.5) Negotiate a clause in the note that allows you to substitute the collateral with another asset of equal/greater value. This appears to be the crux of the strategy. Step 2) Conduct a sale of this asset where you can hopefully clear the initial purchase price - $4.5M. Acquire another asset. Use the $4.5M proceeds from the sale to fund this purchase, and transfer the note to the new asset. ***The sale, and new acquisition, need to be simultaneous in order for you to substitute the note towards the new acquisition. My thoughts - It appears that the 'value' created here is by transacting with a seller who is willing to give you a substantially below-market financing rate (3% compared to 7%). From how I see it, it appears that the asset itself is not where the true money is made, but rather through the seller financing. The first acquisition just serves as the vehicle by which this seller note is created. You can then invest these funds at a 3% borrowing cost as opposed to a market cost of 7%. I guess the trick would be to: 1) Acquire an asset that is 'liquid' enough, and can be sold in a relatively short time frame to a future byer 2) Negotiate an initial purchase price which would allow you to clear what you paid for it when the next buyer shows up. Is my understanding correct?

You’ve got it The value add is in the mortgage and the second property you’re going to buy The deal beyond the deal is where you’re going to make the real money

Don’t get it. Plz re-explain with exchangor southern slang words.

Ya’ll go find sumthin Makin’ offer And pray 🙏

So how do you sell it for what you paid for it? Supposedly you are overpaying because you got favorable terms.

All nice and good except the fact that you overpaid for the asset and you’re relying on selling for a profit.

There’s more to this that you’re not seeing That might be a coffee conversation not an X convo 😎

This isn't about real estate. It's about financing.

What about all the open tabs tho