Real Estate Model: $0 Investment Seller Financing Strategy for Buying Portfolios of Properties

 The "0 down seller financing" strategy in real estate investing is an approach where the buyer purchases multiple properties (a portfolio) from a seller who is offering their own financing terms. The buyer pays a down payment to the seller and agrees to the repayment terms for principal/interest over time, BUT the seller agrees to give one or multiple properties to the buyer free and clear. The buyer can then go and refinance those properties to try and get enough proceeds to pay for the down payment. This involves high risk with 100% leverage essentially. The real estate model below lets you plan out various scenarios.

$45.00 USD

After purchase, the template will be immediately available to download. This is also included in the real estate models and sensitivity table models bundle.

zero down real estate investing

I got the idea for this from a Twitter post by:

I'm not a financial advisor, consult a real estate attorney and use the model at your own risk.

The main scenario this model was built for is buying portfolios of properties with the use of seller financing.

Template Features:

  • Test various leverage assumptions and rent/expense assumptions to see if the deal is feasible.
  • Includes debt service coverage ratio.
  • Inputs for starting rent per property, start month of rent, renovations, ongoing expenses, and growth.
  • Input for average vacancy.
  • Option to include an exit value based on the exit month (up to 120 months holding period) and exit cap rate.
  • Sensitivity Analysis / Table
  • Shows net operating income, debt service from both loans, and cash flow.
  • Includes a DCF Analysis (NPV) and IRR (may or may not be relevant depending on assumptions)
  • Visuals for all key financial metrics of the deal.
  • Includes monthly and annual pro forma views.
With this model, I not only wanted to allow the user to figure out their down payment and financing options, but also show the long-term financial impact of the deal in terms of how much debt service is going to be required based on the leverage used and how that compared to the cash flow expected from operating the properties. There are lots of strategies to play around with in this structure.