All Forum Posts by: Phil Fowler

Paula,

What are the risk in down payments opposed to placing the funds in a trust?

@Mitch Messer thanks for the explanation, makes total sense now. The principal balance is what he’s paying for not having the 1 million up front + he has to come up with the 90% (because he out 10% down) so an additional monthly payment is required to eventually pay off park purchase. 

Hi Guys,

Phil Fowler here. I'm new to the Bigger Pockets community and have been listening to the podcast for about 3 weeks now. I love the knowledge but after listening to Brandon speak of his deal with on the $1 million MHP I want to make sure I understand owner financing.

This is from episode 272! He said the park was bought for $1million, he put 10% down and the seller made an interest rate of 5%.

If I understand correctly he put 100k down and the owner made 45k a year off interest or in other words, Brandon wrote a check for $3,750 a month?

So in essence he was able to purchase a million dollar MHP with 100k and paying the owner $3,750 a month until the remaining 900k is paid?

Numbers aren't my thing but I'm trying to get a better grasp off all of this. Thanks guys!