Posted by ALLEN SHAW-NC on November 13, 2002 at 08:15:59:
Do you have examples of the spreadsheets you mentioned above that you can attach to an email and sent to me? Thanks for all your input. It’s greatly appreciated.
WHO KEEPS US WITH THE PAYMENTS? - Posted by ALLEN SHAW-NC
Posted by ALLEN SHAW-NC on November 11, 2002 at 11:46:05:
My question is concerning creative financing. Example, you put your creative mind to work and worked out a deal with the seller to take back a mortgage for the property you’re interested in. They take it back and charge 9% interest. If no institution is involved to record & track the transaction to it’s completion, who keeps up with the mortgage payment, acrued interest and so forth? How will I know where I’m at with the balance and even when the property is paid for to keep track of the equity? I know you’ll probably say, I the creative buyer does. But what if I turn out to get say, ownership of 50 properties at once and they all have creative terms set up. How is this done and who follows up to keep it correct and honest? I know this is probably one of those common sense answers, but I’m looking for those of you with multiple properties who have experience facing this. How do you handle it? Simply put, how do you track your “Accepted” offers to keep current with your payments and balance?
I’d say don’t! - Posted by js-Indianapolis
Posted by js-Indianapolis on November 12, 2002 at 10:37:06:
My thought is to make this as simple as possible for all parties involved. If you’re going to have the seller take back a mortgage, pay interest only payments.
Here’s my thought. Even if you do a 5 year balloon, you will not pay down enough to make it worth the headache. A simple example? $100,000 mortgage, at 9% is $805 a month. After 5 years, and paying a total of $48,300, you have paid only $4,120 in principle. Are you really into tracking a this every month? You still owe $95,880, almost what you owed five years ago.
Why not pay $750 a month (the interest), and keep the balance the same, until the balloon. You can sell the carrier on the fact that they’ll always have their principle. “Mr. Seller, because we only pay interest, after 5 years, you’ll still get your full $100,000.”
As far as having 50 of these, you need to cross that bridge when you come to it. If you’ve got 50 units generating cash flow each month, you’ll have enough for someone else to figure all this out for you.
Just for kicks, here’s the amortization schedule for your example. The 1st number is the payment #. Last number is the balance remaining. Half way through (payment 180, 15 years) you STILL only paid down $20K. Wanna mess with this?
Payment schedule
Payment / Principal / Interest / Ending Principal Balance
$100,000
1 $805 $55 $750 $99,945
2 $805 $55 $750 $99,890
3 $805 $55 $749 $99,835
4 $805 $56 $749 $99,779
5 $805 $56 $748 $99,723
6 $805 $57 $748 $99,666
7 $805 $57 $747 $99,609
8 $805 $58 $747 $99,551
9 $805 $58 $747 $99,493
10 $805 $58 $746 $99,435
11 $805 $59 $746 $99,376
12 $805 $59 $745 $99,317
13 $805 $60 $745 $99,257
14 $805 $60 $744 $99,197
15 $805 $61 $744 $99,136
16 $805 $61 $744 $99,075
17 $805 $62 $743 $99,014
18 $805 $62 $743 $98,952
19 $805 $62 $742 $98,889
20 $805 $63 $742 $98,826
21 $805 $63 $741 $98,763
22 $805 $64 $741 $98,699
23 $805 $64 $740 $98,634
24 $805 $65 $740 $98,570
25 $805 $65 $739 $98,504
26 $805 $66 $739 $98,438
27 $805 $66 $738 $98,372
28 $805 $67 $738 $98,305
29 $805 $67 $737 $98,238
30 $805 $68 $737 $98,170
31 $805 $68 $736 $98,102
32 $805 $69 $736 $98,033
33 $805 $69 $735 $97,963
34 $805 $70 $735 $97,894
35 $805 $70 $734 $97,823
36 $805 $71 $734 $97,752
37 $805 $71 $733 $97,681
38 $805 $72 $733 $97,609
39 $805 $73 $732 $97,536
40 $805 $73 $732 $97,463
41 $805 $74 $731 $97,389
42 $805 $74 $730 $97,315
43 $805 $75 $730 $97,240
44 $805 $75 $729 $97,165
45 $805 $76 $729 $97,089
46 $805 $76 $728 $97,013
47 $805 $77 $728 $96,936
48 $805 $78 $727 $96,858
49 $805 $78 $726 $96,780
50 $805 $79 $726 $96,701
51 $805 $79 $725 $96,622
52 $805 $80 $725 $96,542
53 $805 $81 $724 $96,461
54 $805 $81 $723 $96,380
55 $805 $82 $723 $96,298
56 $805 $82 $722 $96,216
57 $805 $83 $722 $96,133
58 $805 $84 $721 $96,049
59 $805 $84 $720 $95,965
60 $805 $85 $720 $95,880
61 $805 $86 $719 $95,795
62 $805 $86 $718 $95,708
63 $805 $87 $718 $95,622
64 $805 $87 $717 $95,534
65 $805 $88 $717 $95,446
66 $805 $89 $716 $95,357
67 $805 $89 $715 $95,268
68 $805 $90 $715 $95,178
69 $805 $91 $714 $95,087
70 $805 $91 $713 $94,995
71 $805 $92 $712 $94,903
72 $805 $93 $712 $94,810
73 $805 $94 $711 $94,717
74 $805 $94 $710 $94,623
75 $805 $95 $710 $94,528
76 $805 $96 $709 $94,432
77 $805 $96 $708 $94,336
78 $805 $97 $708 $94,239
79 $805 $98 $707 $94,141
80 $805 $99 $706 $94,042
81 $805 $99 $705 $93,943
82 $805 $100 $705 $93,843
83 $805 $101 $704 $93,742
84 $805 $102 $703 $93,640
85 $805 $102 $702 $93,538
86 $805 $103 $702 $93,435
87 $805 $104 $701 $93,331
88 $805 $105 $700 $93,227
89 $805 $105 $699 $93,121
90 $805 $106 $698 $93,015
91 $805 $107 $698 $92,908
92 $805 $108 $697 $92,800
93 $805 $109 $696 $92,691
94 $805 $109 $695 $92,582
95 $805 $110 $694 $92,472
96 $805 $111 $694 $92,361
97 $805 $112 $693 $92,249
98 $805 $113 $692 $92,136
99 $805 $114 $691 $92,022
100 $805 $114 $690 $91,908
101 $805 $115 $689 $91,793
102 $805 $116 $688 $91,676
103 $805 $117 $688 $91,559
104 $805 $118 $687 $91,441
105 $805 $119 $686 $91,323
106 $805 $120 $685 $91,203
107 $805 $121 $684 $91,082
108 $805 $122 $683 $90,961
109 $805 $122 $682 $90,838
110 $805 $123 $681 $90,715
111 $805 $124 $680 $90,591
112 $805 $125 $679 $90,466
113 $805 $126 $678 $90,340
114 $805 $127 $678 $90,212
115 $805 $128 $677 $90,084
116 $805 $129 $676 $89,955
117 $805 $130 $675 $89,825
118 $805 $131 $674 $89,695
119 $805 $132 $673 $89,563
120 $805 $133 $672 $89,430
121 $805 $134 $671 $89,296
122 $805 $135 $670 $89,161
123 $805 $136 $669 $89,025
124 $805 $137 $668 $88,888
125 $805 $138 $667 $88,750
126 $805 $139 $666 $88,611
127 $805 $140 $665 $88,471
128 $805 $141 $664 $88,330
129 $805 $142 $662 $88,188
130 $805 $143 $661 $88,045
131 $805 $144 $660 $87,900
132 $805 $145 $659 $87,755
133 $805 $146 $658 $87,609
134 $805 $148 $657 $87,461
135 $805 $149 $656 $87,312
136 $805 $150 $655 $87,163
137 $805 $151 $654 $87,012
138 $805 $152 $653 $86,860
139 $805 $153 $651 $86,706
140 $805 $154 $650 $86,552
141 $805 $155 $649 $86,397
142 $805 $157 $648 $86,240
143 $805 $158 $647 $86,082
144 $805 $159 $646 $85,923
145 $805 $160 $644 $85,763
146 $805 $161 $643 $85,602
147 $805 $163 $642 $85,439
148 $805 $164 $641 $85,275
149 $805 $165 $640 $85,110
150 $805 $166 $638 $84,944
151 $805 $168 $637 $84,776
152 $805 $169 $636 $84,607
153 $805 $170 $635 $84,437
154 $805 $171 $633 $84,266
155 $805 $173 $632 $84,093
156 $805 $174 $631 $83,919
157 $805 $175 $629 $83,744
158 $805 $177 $628 $83,568
159 $805 $178 $627 $83,390
160 $805 $179 $625 $83,211
161 $805 $181 $624 $83,030
162 $805 $182 $623 $82,848
163 $805 $183 $621 $82,665
164 $805 $185 $620 $82,480
165 $805 $186 $619 $82,294
166 $805 $187 $617 $82,107
167 $805 $189 $616 $81,918
168 $805 $190 $614 $81,728
169 $805 $192 $613 $81,536
170 $805 $193 $612 $81,343
171 $805 $195 $610 $81,148
172 $805 $196 $609 $80,952
173 $805 $197 $607 $80,755
174 $805 $199 $606 $80,556
175 $805 $200 $604 $80,356
176 $805 $202 $603 $80,154
177 $805 $203 $601 $79,950
178 $805 $205 $600 $79,745
179 $805 $207 $598 $79,539
180 $805 $208 $597 $79,330
181 $805 $210 $595 $79,121
182 $805 $211 $593 $78,910
183 $805 $213 $592 $78,697
184 $805 $214 $590 $78,482
185 $805 $216 $589 $78,266
186 $805 $218 $587 $78,049
187 $805 $219 $585 $77,830
188 $805 $221 $584 $77,609
189 $805 $223 $582 $77,386
190 $805 $224 $580 $77,162
191 $805 $226 $579 $76,936
192 $805 $228 $577 $76,708
193 $805 $229 $575 $76,479
194 $805 $231 $574 $76,248
195 $805 $233 $572 $76,015
196 $805 $235 $570 $75,781
197 $805 $236 $568 $75,544
198 $805 $238 $567 $75,306
199 $805 $240 $565 $75,067
200 $805 $242 $563 $74,825
201 $805 $243 $561 $74,582
202 $805 $245 $559 $74,336
203 $805 $247 $558 $74,089
204 $805 $249 $556 $73,840
205 $805 $251 $554 $73,589
206 $805 $253 $552 $73,337
207 $805 $255 $550 $73,082
208 $805 $257 $548 $72,826
209 $805 $258 $546 $72,567
210 $805 $260 $544 $72,307
211 $805 $262 $542 $72,044
212 $805 $264 $540 $71,780
213 $805 $266 $538 $71,514
214 $805 $268 $536 $71,246
215 $805 $270 $534 $70,975
216 $805 $272 $532 $70,703
217 $805 $274 $530 $70,429
218 $805 $276 $528 $70,152
219 $805 $278 $526 $69,874
220 $805 $281 $524 $69,593
221 $805 $283 $522 $69,311
222 $805 $285 $520 $69,026
223 $805 $287 $518 $68,739
224 $805 $289 $516 $68,450
225 $805 $291 $513 $68,159
226 $805 $293 $511 $67,865
227 $805 $296 $509 $67,569
228 $805 $298 $507 $67,272
229 $805 $300 $505 $66,972
230 $805 $302 $502 $66,669
231 $805 $305 $500 $66,365
232 $805 $307 $498 $66,058
233 $805 $309 $495 $65,749
234 $805 $312 $493 $65,437
235 $805 $314 $491 $65,123
236 $805 $316 $488 $64,807
237 $805 $319 $486 $64,488
238 $805 $321 $484 $64,167
239 $805 $323 $481 $63,844
240 $805 $326 $479 $63,518
241 $805 $328 $476 $63,190
242 $805 $331 $474 $62,859
243 $805 $333 $471 $62,526
244 $805 $336 $469 $62,190
245 $805 $338 $466 $61,852
246 $805 $341 $464 $61,512
247 $805 $343 $461 $61,168
248 $805 $346 $459 $60,822
249 $805 $348 $456 $60,474
250 $805 $351 $454 $60,123
251 $805 $354 $451 $59,769
252 $805 $356 $448 $59,413
253 $805 $359 $446 $59,054
254 $805 $362 $443 $58,692
255 $805 $364 $440 $58,328
256 $805 $367 $437 $57,960
257 $805 $370 $435 $57,591
258 $805 $373 $432 $57,218
259 $805 $375 $429 $56,842
260 $805 $378 $426 $56,464
261 $805 $381 $423 $56,083
262 $805 $384 $421 $55,699
263 $805 $387 $418 $55,312
264 $805 $390 $415 $54,922
265 $805 $393 $412 $54,530
266 $805 $396 $409 $54,134
267 $805 $399 $406 $53,735
268 $805 $402 $403 $53,334
269 $805 $405 $400 $52,929
270 $805 $408 $397 $52,521
271 $805 $411 $394 $52,111
272 $805 $414 $391 $51,697
273 $805 $417 $388 $51,280
274 $805 $420 $385 $50,860
275 $805 $423 $381 $50,437
276 $805 $426 $378 $50,010
277 $805 $430 $375 $49,581
278 $805 $433 $372 $49,148
279 $805 $436 $369 $48,712
280 $805 $439 $365 $48,273
281 $805 $443 $362 $47,830
282 $805 $446 $359 $47,384
283 $805 $449 $355 $46,935
284 $805 $453 $352 $46,483
285 $805 $456 $349 $46,027
286 $805 $459 $345 $45,567
287 $805 $463 $342 $45,104
288 $805 $466 $338 $44,638
289 $805 $470 $335 $44,168
290 $805 $473 $331 $43,695
291 $805 $477 $328 $43,218
292 $805 $480 $324 $42,737
293 $805 $484 $321 $42,253
294 $805 $488 $317 $41,766
295 $805 $491 $313 $41,274
296 $805 $495 $310 $40,779
297 $805 $499 $306 $40,280
298 $805 $503 $302 $39,778
299 $805 $506 $298 $39,271
300 $805 $510 $295 $38,761
301 $805 $514 $291 $38,247
302 $805 $518 $287 $37,730
303 $805 $522 $283 $37,208
304 $805 $526 $279 $36,682
305 $805 $530 $275 $36,153
306 $805 $533 $271 $35,620
307 $805 $537 $267 $35,082
308 $805 $542 $263 $34,541
309 $805 $546 $259 $33,995
310 $805 $550 $255 $33,445
311 $805 $554 $251 $32,892
312 $805 $558 $247 $32,334
313 $805 $562 $243 $31,771
314 $805 $566 $238 $31,205
315 $805 $571 $234 $30,635
316 $805 $575 $230 $30,060
317 $805 $579 $225 $29,481
318 $805 $584 $221 $28,897
319 $805 $588 $217 $28,309
320 $805 $592 $212 $27,717
321 $805 $597 $208 $27,120
322 $805 $601 $203 $26,519
323 $805 $606 $199 $25,913
324 $805 $610 $194 $25,303
325 $805 $615 $190 $24,688
326 $805 $619 $185 $24,068
327 $805 $624 $181 $23,444
328 $805 $629 $176 $22,816
329 $805 $634 $171 $22,182
330 $805 $638 $166 $21,544
331 $805 $643 $162 $20,901
332 $805 $648 $157 $20,253
333 $805 $653 $152 $19,600
334 $805 $658 $147 $18,943
335 $805 $663 $142 $18,280
336 $805 $668 $137 $17,613
337 $805 $673 $132 $16,940
338 $805 $678 $127 $16,262
339 $805 $683 $122 $15,580
340 $805 $688 $117 $14,892
341 $805 $693 $112 $14,199
342 $805 $698 $106 $13,501
343 $805 $703 $101 $12,798
344 $805 $709 $96 $12,089
345 $805 $714 $91 $11,375
346 $805 $719 $85 $10,656
347 $805 $725 $80 $9,931
348 $805 $730 $74 $9,201
349 $805 $736 $69 $8,465
350 $805 $741 $63 $7,724
351 $805 $747 $58 $6,977
352 $805 $752 $52 $6,225
353 $805 $758 $47 $5,467
354 $805 $764 $41 $4,704
355 $805 $769 $35 $3,934
356 $805 $775 $30 $3,159
357 $805 $781 $24 $2,378
358 $805 $787 $18 $1,591
359 $805 $793 $12 $799
360 $805 $799 $6 $0
Its called - Posted by Jim FL
Posted by Jim FL on November 11, 2002 at 17:30:49:
Allen,
It is called management, book keeping and accounting.
We must keep records of everything.
I keep my own, but will be getting an accountant and daily book keeper eventually.
There is software out there to deal with all this.
You can set up a spreadsheet for each property, and then a master spread sheet for the overall company business expenses income etc.
As far as knowing what the balance is on a particular note etc., when that note is created, by either you, your attorney or title company, there should be an amoritization schedule made up as well.
You can use this to figure out what you still owe etc.
If you’ve never set up a seller carried transaction, where the seller is carrying back a mortgage, then you would be wise to seek a pro to set it up, like an attorney.
They might even handle the servicing of the loan for the sellers, for a fee of course.
Some here use loan servicing companies to manage accounts etc.
To each their own, it is personal preference.
Good luck,
Jim FL
Re: I’d say don’t! - Posted by ALLEN SHAW-NC
Posted by ALLEN SHAW-NC on November 13, 2002 at 08:12:30:
Thank you so much for you information. It is very educational and I appreciate it. Have a blessed day.