And now back to creating your epic wealth.

Balloon payments.

Yeah, they got you thinking, don't they?

To clarify, and just be certain that we're all on the same page,

a balloon payment, it's pretty much what you might guess it to be.

It's a large payment, and it can be a really valuable variable to play with when negotiating

seller financing. For example, if a seller wants $100,000 for their property

and you've determined it's not actually worth much more than that,

you can still make this a really good deal for yourself

as long as you can control the terms,

the terms and how the $100,000 is going to be paid back to the seller.

So remember, we purchase property in one of two ways, either buy your price and the seller's terms

or the seller's price and your terms.

Now since the seller's price and your terms now since the seller is stuck on their price of $100,000 for their

100,000 property you've got to take control of the terms.

So we'll keep our example from last segment being that, you know, this particular property

is going to rent for $1,200 per month. And after all the properties expenses are taken care of,

we're left with $ 720 per month of income

before debt service.

So if the seller is going to carry back the $100,000, we need to focus on structuring some sort of terms that cost less than $720 per month, probably right around $500 per month.

At least, and that will give us $ 220 per month of cash flow.

Decent deal.

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