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Started By
Message
Please help me calculate this rate of return.
Posted on 2/17/18 at 8:20 am
Posted on 2/17/18 at 8:20 am
I bought a house for $30,000 and put $5,000 in it ($35,000 total).
I am owner financing it for 20 years at 10% interest for $60,000.
Should be pretty easy for someone that has an HP 12c laying around. I just can't find mine and need to figure this out today.
I am owner financing it for 20 years at 10% interest for $60,000.
Should be pretty easy for someone that has an HP 12c laying around. I just can't find mine and need to figure this out today.
5
Posted on 2/17/18 at 10:24 am to I Love Bama
They have ROI calculators and amortization calculators all over the internet to use.
Posted on 2/17/18 at 10:27 am to I Love Bama
Those section 8’s still working out for you?
Posted on 2/17/18 at 10:40 am to 13SaintTiger
shite has to be bad in Alabama to get a house for $30K. Teardowns in rural Louisiana go for $30k+ and it's not like rural LA is a place people are dying to get into or has limited land like San Fran or something.
Posted on 2/17/18 at 11:02 am to I Love Bama
IRR = 19.27%
Posted on 2/17/18 at 11:34 am to stout
Real estate is fricking cheap here. I can do these deals all day long.
Posted on 2/17/18 at 11:35 am to southernelite
Thanks! I can not find an online calculator that could do it.
Posted on 2/17/18 at 11:50 am to I Love Bama
So they pay you $250 per month?
Posted on 2/17/18 at 12:03 pm to I Love Bama
How often do you have tenants that cause you problems?
Not a ton of capital at risk which is an upside for you.
Not a ton of capital at risk which is an upside for you.
Posted on 2/17/18 at 12:29 pm to lynxcat
I've been very lucky so far. I haven't had any issues.
Posted on 2/17/18 at 12:43 pm to Mr.Perfect
quote:
So they pay you $250 per month?
$579.01
Posted on 2/17/18 at 12:56 pm to southernelite
Oh good god. I just divided the principal by 20 years....
Posted on 2/17/18 at 2:44 pm to lynxcat
quote:
How often do you have tenants that cause you problems?
At those price points... I’d imagine a statistical anomaly not to have a meth lab thrown in the mix eventually.
Posted on 2/18/18 at 12:48 am to LSUcam7
HP 12 app on your phone will give you the answer. No reason not to have it.... You'll impress your friends and neighbors.
Posted on 2/18/18 at 4:17 am to I Love Bama
My dad does the same thing out of birmingham. Banks just won’t loan to people there.
Posted on 2/18/18 at 4:36 am to I Love Bama
quote:
I am owner financing it for 20 years at 10% interest for $60,000.
If you can extend a note for 20 years at 10%, then you shouldn't need a calculator to know the rate if return is insanely high.
The problem will of course be the kind of tenants who would willingly sign up for such a deal.
Posted on 2/18/18 at 7:48 am to foshizzle
quote:
The problem will of course be the kind of tenants who would willingly sign up for such a deal.
I sold this deal in less than a day with multiple back ups.
Posted on 2/18/18 at 8:33 am to foshizzle
quote:
The problem will of course be the kind of tenants who would willingly sign up for such a deal.
I have had a few pieces of RE I owner financed on similar deals over the years. Took $5K down on them too. They were to people who made good money working in the oilfield or in the multiple chemical and/or refinery plants in SWLA. They had money but no credit because of a divorce or something. Doesn't mean they weren't paying their house note. The issue I had is the loans never matured because they sold the house or refinanced eventually but I still made good money on them overall. Only had to foreclose on one but I resold it for more later.
Posted on 2/18/18 at 9:06 am to stout
Yep. Exactly.
I don't transfer anything to their name until the note is paid off though. In my agreements, if they are 5 days late on their payment, there is a penalty. If it goes to 60 days, I take the house back.
I don't transfer anything to their name until the note is paid off though. In my agreements, if they are 5 days late on their payment, there is a penalty. If it goes to 60 days, I take the house back.
Posted on 2/18/18 at 9:21 am to I Love Bama
Yea bond for deed. I currently have one bond for deed on a lot in a subdivision I built. I would like to have it back considering what the prices are now.
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