One more pillar for long term success

[Account Closed]

For years I have been investing in rental properties. My experience has always been with single family properties. I have also managed apartments and have always managed my own properties.

This year I have been working on branching into apartment rentals. Financing was an important consideration and I am glad that I found lenders willing to work with me.

Today, I finally found a private lender willing to invest in my deals. It is a friend of a friend kind of relationship and know that I invest in RE. They are offering 12% simple interest money with no fees that they would rather see paid back as interest only. It has taken some time for me to build relationships and finally find someone that can provide money like this.

[Bill Gulley]

That's the way I took it Jon, I have had investors like this, they don't want principal back since it is rather useless in small amounts, they would just re-invest it and it would be at a much lower rate. So, many like to say take it all and pay me the interest only. I took the funds and kept them in escrow and collateralized until I used them. I paid 10% and had more than I needed, which is a problem too! You have to have a balloon payment, as it needs to be repaid someday, but it can also be rolled over for another term. It's a great way of having OPM! Bill