I don't know if this is right...
6,800 Purchase 9,320 - 3,000 = 6,020
2,500 Repairs 700.00 * 12 = 8,400
9,320 all-in 8,400/6,020 = 1.39 = 140%
3.000 Down N = 60
26,000 Finance 1/YR = 9
PMT = 700.00
Terms 5yrs @ 9% PV = 33,721.36
425.00 Lot Rent
1,125.00 Total payment
I'm from Florida and looking at the usury laws we need to stay under 25% I/YR. However I'm trying to understand how fair market value vs usury laws apply. How is selling a home at $20,000 over 5 years with a low interest any different than selling a $10,000 property at a high interest? Are the laws to protect people from getting duped by thinking they are paying less for a property where Principal + Interest is really what they are paying?
Example: I found a single wide that I can pick up for about $4,000, will require about $4,000 in repairs, All-In cost $8,000. Rents here go for about $850 for this, and the lot costs $455 a month. So $395/mo or $4,740 annual cash flow. So saying I would sell this at $20,000 for 60 months, would be a 6.89% interest. But at the same time, if I were to say I'd sell the property for $10,000 with the same terms, the I/YR would be 41.12%. I want to ensure I'm staying legal and providing a legitimate service, but trying to understand the difference here.
Also, let me know if you think this would be a good buy, thanks and Happy new Year!
Great questions, but at the end of the day it seems like you have a probable deal, just need to get the fine details worked out. I would contact a local atty for more details, just be weary of any atty that says what you are doing can't be done, I find many atty do not know what they are talking about.
I just had to add....Daniel you have clearly made an impact on so many lives, I can see it as I read through the comments and I agree with everyone out there!! I too am blown away with your generosity. I was hitting an all time low and your videos and teachings has begun to turn my life around. So thank you.
YOU will definitely be one of the FIRST to know when I strike my first deal. THANK YOU MUCH APPRECIATED!!!