All Forum Posts by: Lisa Eckman

@?Trent Stone can you show me your math? Here's what I calc: 85K@2 pts = 1700. Interest at 10% for 4 months = 85K*10%= 8500/year / 12 mo * 4 mo = 2833.33 + 1700 = 4533.33. Which I would think would be ROI of 5.3%. NOT 7K profit at 5.9% ROI. What am I missing. TIA

I agree with @Matt Inouye.  Refinance. You got a great deal to begin with. It’s appreciated $200k in 4 years. No need to take advantage of the seller/note holder. 

I used to work for a software company that had a loan servicing product. There are many ways to calculate interest. You’d be surprised. I know I was. At any rate, this is definitely legitimate and very common.  If that’s how they calculate interest, that’s how they do it. Bottom line:  take it or leave it. They aren’t going to change it.  Hope this helps. 

Nope. Still doesn’t work. 

@Gardy Saturne I clicked on the link above, but got "Page Not Found".  FYI

That’s what I would have thought, but that’s not what I’m seeing in your report. Under acquisition cost it shows a loan Amt of $119k. The refinance section shows an ant for purchase and rehab, but I’m assuming that would be AFTER the rehab. So I still think there’s something wrong here. 

@Gardy Saturne So, if I'm understanding this correctly, you're getting a loan for purchasing the property, but have the cash to rehab. Then, AFTER rehab, you're go to refinance the loan for the ARV and get cash out for the rehab costs you paid for? That's what it looks like to me. And you're doing all of that for 20k in equity (when all is said and done)? Something doesn't seem right IMO. Although I'm not familiar with this report, so maybe I'm reading it wrong (??)

Why don't you just pay off the loan with the bank (make sure no pre-payment penalty), and then make a loan to cover what you paid out.  Obviously, put this all in writing to protect all parties.  But I think that should work just fine.

I think it depends entirely on the entity you are working with (County or whatever).  You need to contact them and they will have guidelines as to what needs to happen if you're the winner at auction (timelines, deposit, buyers premium, etc.).  Then you need to contact your lender (if applicable) and see if/how you can make that happen.

I agree with Andrew.  I would go into a small loan office and talk to them about what you want to do.  I would ask for a position as a loan processor if at all possible.  Even an assistant.  That would put you in an excellent position for moving up (if you still chose to do that), and you would gain a wealth of knowledge.