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Private Money Lenders Win With You When They Invest In You |
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Written by Webmaster
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Saturday, 20 February 2010 |
Let's look at an example of real estate investing with private money, and how everyone wins.
Let's say you bought a house and fixed it up for a total of $100,000, and you sold it for $150,000, meaning you made a $50,000 profit, and you did it in 4 months.
If you also paid interest at 12% per year (1% per month) on the $100,000 you borrowed, you would pay $4,000 in interest for that 4 month period.
Now, remember, you made $50,000 on the deal. So, subtract the $4,000 in interest cost from your gross profit and youre left with a net profit of $46,000 from your real estate investing. Pretty cool deal isnt it!
Your private money investor is happy because they got 12% on their money, about six times the prevailing bank rates, and their money was secured by the property you bought with the money.
Not only that, but you made $46,000 too! Everyone wins.
Internet Business |
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Last Updated ( Saturday, 20 February 2010 )
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