Posted by mark In Okc on April 25, 2000 at 21:16:05:
Hi Lonnie,
Thanks for your help and your books. I have both.
We both put up $3000. I’m paying him 18% for 36 months 108.46/mo. I structured the note to the buyer for 48 months @ 13% 230.58/mo. I kept the $500 down payment. My total investment is $2500.
I hope this makes it more clear. By the way this is my 1st. one. Please show me the math.
Thanks again.
Mark in OKC
figuring yield (help) - Posted by mark in OKC
Posted by mark in OKC on April 25, 2000 at 17:49:14:
I just structured a Lonnie Deal with a partner and am trying to figure my yield. Heres the numbers,can someone please show me the math.
My investment is $3000. Partners is $3000. Repaying partner 18% for 36 months. $108.46/month. Sold for $8995 $500 down (mine) 13% 48 months. $230.58/month
Total return is $11,088. Partners return is $3924. My net is $7164. I use a HP calculator and know how to figure these when the pay back periods are the same. I’m a little confused due to the different pay back periods.
Thanks to all for any help.
Re: figuring yield (help) - Posted by Lonnie
Posted by Lonnie on April 26, 2000 at 07:49:00:
Hi Mark,
Your figures are a little different than what I get. If you took a note for $8495, 13%, 48 months, the payment will be $227.90, $2.68 less than you quote.
The payment to your partner is correct?$108.46. That leaves you getting $119.44 for the first 36 months, and then $227.90 for the last 12 months., for a total of $7,034. Without going into the key strokes, your yield is 54.97% if the note runs the entire term.
You’ve made a good start. Congratulations.
Hope this helps,
Lonnie
Check my math… - Posted by Andrea
Posted by Andrea on April 26, 2000 at 04:38:52:
Hi Mark,
It looks to me like you need to reduce their payment:
N 48 I 13% PMT $227.89 PV $8495.00
Your investor’s portion looks like this:
N 36 I 18% PMT $108.46 PV $3000.00
Your part would be (and here’s where I’m not sure there isn’t a better way):
PV=$2500.00
36119.43 ($227.89-$108.46) is $4299.48
12227.89 (remaining 12 pmts) is $2734.68
$4299.48 + $2734.68 = $7034.16 (total pmts to you)
Now we get to the part you were asking about… here’s how I did it and maybe I goofed:
You could divide the total by 48 (getting an average pmt)
$7034.16/48 = $146.55
Making your yield problem look like this:
N 48 I 64.68% PMT $146.55 PV $2500
Like I said, double check my math… and if anyone does this in a different way I sure would like to be shown too.
Hope this helps,
Andrea
Re: figuring yield (help) - Posted by Lonnie
Posted by Lonnie on April 25, 2000 at 18:55:45:
Mark,
Not sure I understand your deal. Did you each put up $3000, or was there a total of $3000 in the deal, put up by your partner. Was the sales price $8995, with you getting the $500,and your partner getting $108.46 for 36 months?
Lonnie