All Forum Posts by: Yan Garcia

@Paul K. Got it! Sending good karma your way. Thanks! 

@Clinton McGilvray Thank you for the information and great advice. I have a question about points for you and Paul below. Thank you so much for taking the time to respond to my post and answer my questions as I'm just starting out. 

@Paul K. the way I understand points is me paying money up front to reduce the rate but if the rate is an agreed upon rate, say 11%, I can buy down the rate to 10% using points correct? If that's correct, wouldn't I just try to set the rate at 10% to begin with? So sorry for the questions! 

I'm a bit confused on how a PML gets paid. I understand they get paid by interest payments but it seems to be a slow return. A $20k loan, 30 months, 9% is coming at ~$2400 in interest. That won't be appealing to my money partner. I'd like to ask about a % split. If a rental cash flows at $800/month for example, and split is 50/50, I would assume the PML gets $400 a month. Is this how the % split works with PMLs? How do you guys structure the deal so that it's attractive to a PML?