Investor · Leonia, NJ · Member since 2012 · 57 posts · 6 votes
My Investor is liquid, and I'm moving out of the area..
I don't need the capital and would be content at 8% is this too usurious? Don't wanna scare him off.. I'd never consider seller finance given this is a pro tenant state (if eviction ever comes to play), but I know the guy and his balance sheet...
Property is in NY metro just outside NYC [15 min bus in traffic]...
It's a fixer tho hes adept at this as he invests but has too many properties for a normal mortgage despite his high income and liquidiy, thanks.
Investor · Topeka, KS · Member since 2020 · 669 posts · 488 votes
4y
@Mike Kalob inflation is at anywhere from 7% to +15% depending on who's numbers you want to believe. Ideally we can get an investor who was around during the great inflation to give us their thoughts on what worked and didn't work back then.
I'm not sure if @Dave Van Horn was doing deals back then, but he's the top guy for note investing. Perhaps he would be willing to shed some light on your question?
Fund Manager · Wayne, PA · Member since 2009 · 1k+ posts · 1k+ votes
4y
@Malcomb Stapel Thanks for the mention! Yeah I was around back then and still here :)
First I would say: There are usury laws in certain states, so I would double check that in NY since it could become problematic down the line.
As an investor holding paper, I'm usually doing interest only that's a couple points higher than the going rate which keeps their payment lower, the cashflow higher, then they would pay off the principle when they refi or sell the property. The average person keeps a mortgage 5-7 years anyway and the "interest only" component reduces the relevance of the higher rate. Plus it keeps the buyer incentivized to sell or refi.