All Forum Posts by: Kurt Moeller

So for this example if of $100k needed, at 3points and 12%. But the borrower needs to pay off both points and interest at the end, the total must compound. Would this be accurate:

Start) Beginning $100k needed, points rolled to total owed, so loan start total owed back to lender is $103,092.78 (100k/97%) and borrower received $100k.

1) After Month 1 - Interest after month one is $103,092.78 times 1% is $1,030.93, added to start total total leaves $104,123.71 total owed.

2) After Month 2 - Interest after month one is $104,123.71 times 1% is $1,041.24, added to Month 1 end total leaves $105,164.95 total owed.

3) After Month 3 - Interest after month one is $105,164.95 times 1% is $1,051.65, added to Month 2 end total leaves $106,216.60 total owed.

End) Borrower sells house and pays back lender $106,216.60 total.

Is this accurate for a HML situation?

@Justin S. Referring to the 2nd example above of 12% plus 3pts on a $100,000 loan paid off in 3 months. Questions:

1) Does this assume that the points are actually paid up front (i.e. borrow receives $100k, pays lender $3k, walks away with $97k)?

2) Does the borrow then pays interest of $1000/mo to lender while still holding the house?

3) Would your example change if the points and interest are rolled into the loan and all paid in full at the end?

Welcome Lloyd B. to BP! Both Milwaukee and Green Bay have some excellent areas to invest in, your first move is to get connected with an experienced Property Manager and a Real Estate agent on here to help you find those areas you are looking for.

I'm not sure about the rent price of a property vs the purchase price ratio for the UP. What price range and property types are you looking to get into?

-Kurt

Welcome to BP Zechariah Evans!! Let us know how we can help!

-Kurt

Hello Nicole Pettis and welcome!

I have listened to a lot of Dave Ramsey's stuff and also occasionally struggle with going his route of all cash vs using OPM (Other People's Money) to do further investing.

My way of reasoning goes like this:

1) If taking on another investment property would be too risky of taking food off the table for my family in the case of it going south, I stay away from it.

2) Will this property's cashflow add to my debt snowball or hinder it? Be conservative on the numbers here.

3) If the property can be a rehab flip OR a long-term rental, if I can get at least 2% gross cashflow (Monthly rent divided by the sum of purchase price plus repairs/expenses), I go for it. Since I already have 10 years of Property Management experience and have systems and people in place to take it over, it will add to my debt snowball power long-term.

Feel free to reach out anytime to discuss your Ramsey vs other financial books/guru approaches. He does make a lot of good common sense, but depending on your expertise/experience, you may be able to leverage that as well.

Also, unless you are have a library, don't both purchasing the RichDad/PoorDad book, just type "rich dad poor dad PDF" into Google and you will come up with the book and executive summaries web pages to get it for free! Even Dave approves of that one. Send me a note directly if you want any links.

Welcome!

-Kurt

Welcome Peter Gray! How did you locate your current fix/flip project? Will you sell at the end or just rent that one out also?

Hi Shawn Sorter and welcome to BP!

1) What do you invest in? Rehabs/SF/Apartments?

2) Where to you currently invest (or look to invest) and how do you manage it if it is not nearby?

Thanks for the heads up Steve Foth! Always new web technology to learn!

Slowly figuring out how to reply to people in this forum :)

Thanks for this Alert tips, have turned them on.

Most importantly, I am not just a landlord/investor, I am also an NFL owner of the Green Bay Packers! Always following HS/College/Pro football on the side. My brother did some work in California and was able to shadow Dr. Ed Rodgers (Aaron's dad) for a day, great family and quite the athletes!

Hi Jenkins, I am involved in coaching, though a little bit less this fall as I am trying to spend more time doing RE this year. Brookfield East is tough and got us good last year, hopefully we can get them with Alex James up in Madison! Thanks for the tips and feel free to reach out with West Allis area deals anytime!

-Kurt