All Forum Posts by: Nate Crump

Not related to Real Estate necessarily, I was wondering if someone has a good calculator online for a general business loan. I found a mortgage calc. and a car loan calc., but wasn't sure if a business loan amortized the same way, or if there was any other differences.

I'm trying to figure out a $100,000 loan at 10% interest over 5 years, but would like a calculator to figure out future things.

Thanks for any help!

Dmitriy, thanks for the response. I couldn't get you with the "@" for some reason this time....

I don't know if it matters, but he does have employees, probably 20 of them or so. I will ask if he knows any more details about the type of retirement account he has, although it sounds like he needs to actually contact them to see what he might be able to do. Thanks again.

I have a question on behalf of a friend who isn't a member here. He is a small business owner, so he has money socked away in what he told me was called a "Simple Retirement Plan". I don't know much about those things, but I guess it's different than the 401k or IRA you might have as an employee.

The obvious answer is "consult your accountant", but I wanted to pose the question here. He wants to know if there is any way to roll this money into something where he can then use it for real estate. He currently has some rentals as is, and would like to know if there is any way possible to use that money without paying the penalty.

Thanks for any help or direction.

I was wondering if anyone has experience with or insight into DistressedPro.com. They seem to have education on buying distressed notes, and show how to find notes directly from local/regional banks. That part throws me off as most veterans say that a small fish trying to go direct to a bank is darn near impossible.

I don't *think* I'll be participating, as Dave's (PPR) info on his site has been very good already, but just curious if anyone knew anything about it. Thanks.

Thanks for the info, I would look closer for sure on the interest, although when I was looking at a state by state list of usury laws, it seems Utah was one of those few states that actually lets the free market determine rates, instead of determining the very wise ones in government need to help the little people protect themselves from themselves.

Bill,

Thanks for that info. To clarify, because the whole SAFE Act thing still kind of has my head spinning, are you saying that the issue is not necessarily that I would be buying notes, no problem there if it is for my own portfolio, but that the problem might be that instead of being originated by a bank, this company might have used bad practices in originating, and that liability could pass on to me if I were to purchase from them?

Dion,

Thanks for the explanation on that, and the numbers. Definitely getting an idea for the value of the property, and what it could sell for seems to be first priority. Although, with this particular type of land, and having been in the market, I might not look to sell after foreclosure at all.

I wonder if some of these deals could have quick turn-around time because some started very low, ie. 15-20k, and people might pay that higher interest for a while, but then want to just pay it off as it gets more manageable. I noticed in fact that the original company advertised these plots of land almost like car dealerships, saying things like "come in and put 10% down and pay $200 per month!" or whatever the price might be.

There is a guy/company selling notes in my area. Obviously due diligence will need to be performed, but I wanted to see what some of you pros thought, on the surface:

1. The performing notes were all originated, has been doing it for 25 years. These are NOT primary residences (my first concern). These are recreational properties, one county over from me in a popular area for those activities. This company basically had huge chunks of land, and has been selling it off in 1-10 acre parcels, and putting up small cabin-like structures on them for hunting/fishing.

2. They are 1st position notes, and range from 15k to 75k. All performing.

3. He discounts UP TO 10%, so that makes me believe some are discounted less than that, and maybe on some not at all.

4. Usually 12% interest rate, but few will vary. He also says the yield can be up to 20%, but unless I'm confused I don't see how with a 12% interest rate, even if the note is discounted 10% from the remaining balance, how the yield can be as high as 20%???

Anyway, that's the very basic information behind them, just want to see what people thought. I found them while actually looking around at some of this very recreational property myself. Thanks.

@Dave Van Horn @Ellis San Jose @Doug Smith

Thanks for the words of encouragement. It seems to me that note buying can be a great way to go, so I'll be moving forward on that. I'm glad this thread has been so active and hopefully it can continue to be helpful to a lot of people.

Thanks everyone for the great ideas and words of encouragement. I hope I didn't come off at all as discouraged; I am very much intent on moving this direction. I have felt a little stuck, but nothing a little research followed by some action can't take care of. I'll be frequenting the notes forum often, and hope to see how everyone is doing! Thanks again.