Jump to content
The forums have been archived and are now read only. Years of great info saved for your reading pleasure. Thank you! Visit us on Facebook: https://www.facebook.com/NakedInvestor/ ×
The Naked Investor Forums

mmartin

Members
  • Content Count

    6
  • Joined

  • Last visited

Community Reputation

0 Neutral

About mmartin

  • Rank
    Newbie
  1. Tony, The closing cost for interest only loans is dependent of the mortgage broker you use. they make the closing cost what they need to to get most deals! My best friend is a mortgage broker and he charges me no closing costs. also the helo has a low closing cost but again that is dependent on the mortgage broker. my buddy is excellent with creating creative financing! I am going to ask him permission if he will allow me to put his name and number on this forum. with all that in mind the interest only loan is still the best option. I don't know if I want to use up my home equity or if I have enough to use! Do you due dilligence and find the absolute lowest closing cost. negotioat with brokers, they work on commission they will lower the closing cost for a deal! Take care, Michael Martin
  2. Hi everyone, For some reason when I posted the interest only loan plan the two loans were separated when I wrote them, however when I posted them they went side by side! this might be somewhat confusing and I apologize. it should read from left to right: interest only loan and then spaced over to the right it should be conventional loan. they entire example should be in those two examples. Even though it looks weird and may be hard to understand please read it! I really believe that this could be a way for us to make more and spend less!! If you have any questions please email me at: mmartin29@neo.rr.com thanks again, Michael Martin
  3. Hi everyone, Please help me! I think I have a strategy that will produce more profit with less out of pocket! What we do is buy low and sell hi! Either we sell right away or we lease option and then sell hi! Why not buy a house for below market value, (i.e. huds, va's, foreclosures, motivated sellers.) when you get the loan get a interest only loan. here is the catch. with a interest only loan you never pay toward the principal! but why would we do that when we buy low and sell hi! with a interest only loan you only pay the amount of interest each year. so on a 100,000 dollar house at 5% your yearly interest is 5,000 making you monthly payment 416. let me give you a couple of options to see the difference: interest only conventional loan house - 40,000 house - 40,000 mrkt value - 60,000 mrkt value - 60,000 yearly interest - 2000 mos/pay - 166.66 amotrized schedule - 240/mos i rent for - 360/mos i rent for - 360/mos after 2 yrs of payments - 40000 loan after 2 yrs of payments - 38,987 loan I sell the house - 60,000 I sell the house - 60,000 360/mos - 166/mos = 194/mos profit 360-240= 120/mos profit 194/mos X 24 mos. = 4,656 120/mos X 24 mos. = 2880 60,000-40,000 = 20,000 60,000-38987 = 21013 total profit = 24,656 total profit = 23,895 The interest only plan gives you 761 more dollars and you spend (240-166 X 24 mos.) 1,920 dollars less! Now this a very simplistic plan I have used as an example. Try the plan yourself with houses that cost more and you will notice a huge difference. My point is when we buy low and sell hi, why do we pay more to the principal when we don't have to! Lets keep the out out of pocket expenses lower. I have got to believe that there are other things (investments) that we can use that extra money for! I hope this makes sense if anyone has any questions please email me at: mmartin29@neo.rr.com thanks, Michael Martin
  4. have you sold your georgia property yet? If not I would consider thinking about it. thanks, Michael
  5. ok, here are the numbers i came up with - tell me what you think. house has 76,000 left on mortage seller will owner finance 100% my monthly payment including tax/ins is 640.00 @ 5.5% seller will pay next two months I will set up a 45 day protection clause I lease/option to buy no rent credits 2,000 down w/ option to get back if they buy the house w/in 1 yr. cost of house 85,000 85,000 @ 8% = 624.00 taxes/mon =100.00 ins/mos = 25.00 total/mos =749.00 mos/cashflow =109.00 back end profit = 9,000 take a look and tell me what you think! thanks, Michael Martin
  6. I am a newbie and I may have my first deal. any advice would be helpful. here are the numbers: house price - 76,000 appraisal - 80,000 loan - 30 yr. fixed @ 5.5% bedrooms - 3 offices -1 stories -2 central air - yes baths - 1 (newly remodeled) new kitchen floor with and light fixture/fan dishwasher and window treatments stay partly finished basement with plenty of storage nice closet space upstairs new deck and side porch fenced yard in a quiet neighborhood monthly payements - 640.00 including taxes and insurance. owner will pay closing costs owner will pay this and next months mortgage owner will allow me to take over payments. I am thinking of a sandwich lease option. I will pay 640.00 a month. find a person for a lease to buy. charge them 1-2 thousand (negotiable) down payment. have them pay 650.00 or more a month (again negotiable) with the option to buy for 83,000 at the end of the year. if they buy at the end of the year they get their down payment back. I know there is not any monthly cash flow however i could make 4,000 or so in the back end with a sale!! what do you think? thanks for all of your help, Michael Martin
×
×
  • Create New...