Storage Wins EP010: Erik Stark - Getting a Grip on Owner Finance and Deal Structure Part 2.
Erik Stark joins us again on The Flip Empire show to continue his discussion on how he structures owner finance deals. Erik and his business partner, Steve Mills, have sold over 400+ properties in the last 11 years, so Erik definitely has a lot of qualified experience and advice up his sleeves. Tune in to discover why Erik likes interest only deals and why he would rather have a big payday over a fixed monthly income.
Key Takeaways:
• Be sure to listen to part one of this interview with Erik first!
• Erik does a quick recap of what he talked about in part one.
• When structuring owner finance deals in this particular way, many times the sellers do not want their money back. They want to have a passive income on their property instead.
• If you're confused about what's happening here, rewind this podcast if you have to!
• What happens if Erik could not find a property to move his lender's collateral to?
• Why does Erik structure all of his deals to be interest only?
• Erik usually does an interest only deal for the first year and then moves it to an amortized loan.
• Erik is turning home owner sellers into private lenders.
• Communication is everything to your leaders.
• Alex does a quick recap of the deal he and Erik are talking about.
• How does Erik decide when to turn down a big payday?
• Erik prefers a large cash pay day vs. a monthly income, because he knows he can invest it wisely.
• At the end of the day, the way you structure your deals is a lifestyle choice and decision.
• Alex gives his sellers three options. He gives them cash now, an owner fiance or lease option, or sell their property to a retail buyer.
• Sometimes it's hard to turn down a big payday deal.
• Alex acts like a seller to get a better idea of how Erik works.
• Erik likes to plant the money-earning-potential seed while he is on the phone with a seller.
• Thank you for listening!
Mentioned in This Episode:
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