All Forum Posts by: Tyler Rowley

@Rick Pozos: they get paid every month the deal continues, so why would they care if it goes past 12 months? 

$110,000 x .12 = $13,200

$13,200 / 12 = $1,100/m 

Gotchu. 

@Rick Pozos: Thank you. Really helpful. Can you break down the math to show me how you get $1100/m interest payments? 

If I sell the property in 3 months, Aunt Suzy’s total profit from that investment is $3300, right? 

Why is the “for 1 year” language included in the deal? What happens if you sell the property after 14 months?  

@Hadar Orkibi, can you explain your point about "whichever is lower"? I am losing you on that point. Thanks. 

Let's assume you have a short list of potential private lenders whom you know personally, but you don't necessarily know if they are interested in private real estate lending. What are the best ways to approach them about lending?

@Lee Ripma: When you say "Fixer you can add value to but stabilized enough that you can get bank financing" you are implying using your own funds to purchase the property, right? HML or PML would not work in that case, right?

@Whitney Hutten: Thank you Whitney. Questions:

1) What is "30yr, 10/1, 5/1 products"? What does the 10/1, 5/1 refer to? 

2) "If the deal is good, I bet you can find some to carry the full note at 4-6%. Then you get to craft the terms!" Do you mean for a 30 year loan? 

Hey everyone. Can you write out some easy-to-understand examples of the math for paying back a hard or private lender? This is how I learn. I love to see realistic examples. What are the exact math equations for your monthly payments and exiting the deal? I want to be sure that I understand how the math works. Thanks. 

Thanks Ken.

“I think if you combined a private lender for some of the down payment and you borrowed the rest from the bank it could work, buy you definitely need to buy at a discount.“

Because you still need to refinance ASAP to pay the private lender back? 

Hey everyone,

I am trying to learn all I can about hard/private money and how the deals are structured. I think I know the answer to this, but I want to make sure: Do hard/private money loans only wok for both parties when a property is purchased significantly below the after-rehab-value? I see how these deals work for flips and BRRRR deals, but I am wondering if hard/private money can work for purchasing properties that are priced close to market value.

Thank you.