Payment Of Interest.
Hello all, couple of questions for you please.
I have a source who is interested in lending me private money, I talked general figures in a range of 12-15%.
How should I structure interest payments, Is it on an annualized basis or monthly ?
Lets say I purchase a property for 100k , and sell 2 months later for 130k, what would my interest pmt be at 15%. -$4500??
Sorry if this question seems a little basic, for some reason Im just having a mental block regarding payments.
Thanks for your help.
15% on 100,000= 15,000 yearly or 1,250 monthly , Personally if I was lending the money I would want payments just as a bank would, which would be monthly, your source may be different, depending on your relationship with them, usally compounded montly meaning interest on interest incrued. I personally would want to see what the investment was as a bank would , meaning checking out the property that you planned on investing in.
Personally I use a line of credit thru a mortgage co. which is secured with property , Payments are interest only and only while the money is borrowed. Interest is prime plus 1% so about 5.5%.