Seller Financing- rookie trying to understand the numbers

[Phil Fowler]

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!