Posted by ChicagoMikeW on November 17, 2005 at 14:09:18:
If I need/want to clear $2500 / month for payments (positive cashflow).
My questions are:
How do I treat appreciation? 2004 appreciation rate was 11% for this area.
He is also looking to make money on the appreciation so you ca not try to take all of it or it will be no good to the investor
What is an appropriate interest rate?
What is your interest tare on the loan you have on it? Is it an arm and will it raise on you. You have to make sure your protected on this and make some money.
What is a suitable down payment (10% or more)
How much cash do you need right now? It?s money now or more interest.
How does one calculate interest only payments?
Multiply. X.02 =2%
x.03 =03%
x.1=10%
ECT
How might a higher downpayment 25% affect interest?
More down usually =?s lower intrest rates in the rest of the world
What is meant by prepayment penalty?
If hw buys out the loan are you going to charge him a penalty
How can I make the note look good to an 3rd party investor?
Depends on the investor usually. Depends on the credit of the person on the other end of the note.
Investor Offer - How do I treat it? - Posted by Big Toe
Posted by Big Toe on November 17, 2005 at 12:37:54:
I have a home selling at $440,000 - I am willing to offer financing. Got this offer from an investor. Want to know how I might treat it.
You determine what percentage of a down payment that you would be comfortable with. Carryback the rest for a 84 month period interest only(30 year amortization), with equal 1/3 lump sum payments due on month 36, 60 and 84 to cure all of the balance. No prepayment penalty longer than 12 months please. Let me know your thoughts and your down payment requirements!
If I need/want to clear $2500 / month for payments (positive cashflow).
My questions are:
How do I treat appreciation? 2004 appreciation rate was 11% for this area.
What is an appropriate interest rate?
What is a suitable down payment (10% or more)
How does one calculate interest only payments?
How might a higher downpayment 25% affect interest?
What is meant by prepayment penalty?
How can I make the note look good to an 3rd party investor?
I’m willing to play ball and let this guy make some cash off my house as long as I do too.