All Forum Posts by: Connie Brzowski

Hi loki,

Sorry to be unclear-- I understand perfectly in my own muddled mind :mrgreen:

I'm trying to find out what my payment will be if I do a 12 month, interest only loan.

I can see too many variables...

For simplicity, lets say I'm borrowing 50K to buy and rehab a property from a private lender. How is this structured to be attractive to the lender?

Lets say Uncle Joe is getting 4.9% from his cd at the bank and is willing to loan the money for one year at 10%, interest only payments to be paid in full in 12 months.

Clear as mud? I know this is probably *really* simple, but for some reason, its just not making sense tonight :tongue:

Not sure if this is the right place to ask...

I'm trying to structure a business proposal for a private lender and I'm having trouble running the numbers.

This is from an article I read on another investment forum. Hope its okay to quote here (the author is Zack Wiest):

They lend you money at 10%, 12%, even 15% simple interest for a term of twelve months. You pay them interest only payments monthly, quarterly, or whatever you agree. You promise them you will not ask for more than 70% of the after repair value ensuring their loan will be protected by sufficient equity should the deal go bad.

So... using the trusty business calculator, how do I figure interest-only payments?

(if this is easy, I'm going to feel *very* silly 8) )

Personally, I love the stone on that fireplace. Its dark, but dark is okay.

It needs a mantle... that's not an opinion, that's a fact :D You just can't do much with a mantle-less fireplace, decorating-wise.

Plus, mantles are relatively inexpensive-- our cabinet guy makes them and will match the wood in the kitchen for continuity.

That said, I'd also buy a nice fireplace screen and have that installed... it'll make a world of difference.

We're seeing some of the same here-- got so excited, I did a spit-take over the keyboard.

AND, the foreclosures are getting *nicer*-- much better condition than a year ago. :woohoo:

Overly Broad Generalization Alert:

In our area, a large percentage of the tenant pool (read that as *men*)will not rent a house without a garage. Also, most prospective home buyers won't even give it a look.

YMMV of course, but here, I'd never do a garage conversion unless there was room to build a detached garage on the lot *and* it made financial sense to do so.

We're a little past learning to identify good deals... no problem there. 8)

We've also got several good contractors working with us.

At the moment, its probably having too many good deals available at the same time that bank financing is tightening up :cap: But I imagine that's a common problem right now.

winn-- those are very real concerns... we've definitely seen that around here.

Seems like the key is to find mobile home parks with hired [i]managers/i] (and absentee owners 8)). Some of our parks here are basically owned by far away corporations and the managers are very agreeable if fairly treated.

When we first started, our biggest hurdle was our old way of thinking... old programming from the work/save/collect Social Security mentality.

That was the *right* way and anything else was risky. Slowly we began to understand that our old way of handling money was risky... but still, those old inner monologues keep popping back up from time to time :roll:

Now our biggest hurdle is keeping cashflow maximized so we can continue to expand :D

For our low-end rentals, we like peel and stick vinyl tiles for several reasons:

1. Cost-- we buy the most expensive available which runs about $1 each
2. Durability--The better tiles hold up very well and if you prep the floor right beforehand, they don't peel up the way they used to back in the day :mrgreen:
3. Ease of repair-- if one (or 2 or 3) get scratched, they're easy to replace. We keep an extra box on hand. Replacing is as easy as (a)heating with a blow dryer, (b) lift the old tile off, (c) stick the new tile down... gotta love it 8)
4. For repairs, we charge $10/tile to replace damaged tile... reasonable (the tenant doesn't get charged for the entire floor) and also gives a nice profit margin as it takes about 60 seconds to fix :D
5. Looks-- the newer peel and stick looks fantastic... nothing like the old, cheap thin stuff. Our tenants love it. We're going to experiment with the wood grain planks on our next place which look *very* nice at the same cost as the high end squares.

I'm late to the party but I didn't see this covered.

Our biggest problem to date has been with single female tenants moving in scuzzy guys they meet on the internet, no joke. Our lease says no one moves in who isn't on the lease, so we give them notice, but it's mighty aggravating.:pissed: Wish there were some sort of test that would predict which seemingly normal females (who pass all background checks and screening) will be crazy enough to move some jobless felon into their apartment :crazed: