How much is too much interest?
How much is too much interest?
I'm looking at an opportunity on a property that I want to buy. It looks like I can make $100k net profit if I put in $200k of my own money. But, if I put in 10% of my own money I can make $50k net.
The rub is, I'll be paying 4 pts. and 20% interest on the 90%. Yes, I still should make the $50k net.
This is more of a learning post, then a I can do better terms post.
If you respond please help people understand why this works.
P.S. It's a short term loan.
Thanks,