How to Calculate private money loans on a rehab in Excel

[Jonathan Johnson]

Hello BP!

I'm trying to figure out how to analyse rehab costs and one of them is using private money.

If I can buy a house for W amount of dollars, and it needs X amount of repairs, how much will a Y% private loan for repairs(Y) cost over Z amount of months? 

Basically how do I know the cost taking out a higher percent loan for repairs and then refinancing later back into a regular loan?

[Tom S.]

@Jonathan C.  Yes, no prepayment penalty if paying it back sooner.  Always insist on that language.

Amortized means you're paying prinicipal and interest every month, and is the standard way a bank loan (mortgage) is calculated.  Simple interest is just interest only, and for a private loan, is probably the easiest way to go, especially if it's shorter term.

- Tom