HML Math Question

[Susie C.]

Hi all!  

I had a question. From my understanding, most HML want you to have a financial stake. I've spoke to some via BP site and most want you to put down 20% of the purchase price of a home and they can front the other 80%.

My question is that if they are on a 9% IR and let's say I flip a home and sell it within 2 months, does this mean that I am going to pay them: 

Loan Amount + Loan Amount x IR% x  _months?

So, let's say it's  500k loan with 9% IR then it's $45,000? 

Or does this break down based on a 12 month term, so 45,000/12= $3750 x 2 months = $7500  

Can someone please help to clarify? Thank you! 

[Ned Carey]

@Daria B. talk to other investors, serious investors know who the good title companies are. 

HML will generally use one of the best in the area. They want the title to be perfect and use some of the most thorough and nit-pickiest title companies to protect their interest.