General math & interest rate ? - Posted by Kevin

Posted by bobb on September 06, 2005 at 17:35:17:

I have 2 programs on my PDA.

  1. paulmiller.net This is free but does not allow you to figure a yield over 20% so it’s useless for ROI or yield.

  2. loanexpertlite ver 4.0.3 from Wakefieldsoft.com
    This one cost a little bit but it’s powerful, handy, and easy to use. Computes the ROI and yield etc.

I’ve downloaded about 5-6 others and didn’t like them.

good luck,

bobb

General math & interest rate ? - Posted by Kevin

Posted by Kevin on September 01, 2005 at 20:35:42:

I finished DOW a few days ago and absolutely love it. I’ve gained a wealth of information from this forum and a great deal of state specific information through the archives.
However, I just don’t understand the math.
Is a financal calculator necessary to make sense of the charts such as the one on page 34?
Or am I just missing the concept? In my search of the archives under ‘math’ I’m assuming that a financial calc. IS necessary. I’ve read recommondations of the HP 10 or 12 but haven’t been able to find them. Anyone know if a HP B11 will work for me?
One other question please:
Can anyone tell me what interest rate is appropriate/legal in Arizona?

Many Thanks

Kevin

Re: General math & interest rate ? - Posted by Donald E. Lutz

Posted by Donald E. Lutz on October 10, 2005 at 08:20:28:

I wrote a book entitled “The Mathematics of Personal Finance” It is not sold on bookseller shelves. You can review it and/or buy it from iUiverse.com. It costs $20.95. It is the best book written on the subject. Don Lutz

Re: General math & interest rate ? - Posted by John B. Corey Jr.

Posted by John B. Corey Jr. on September 06, 2005 at 20:29:37:

Kevin,

When you were looking did you check Office Depot or similar? I know they carry the HP 12c.

I have not used the TI as I have been an HP user since 1983. Once you get the hang of your calculator you will find you can really put deals together in ways that others never even consider.

The math is not that complex when you train yourself on the calculator. More correctly, the math complexity is handled by the calculator and all you need to do is understand how best to use the tool. DOW is great for showing you the two major calculations.

How to compute the loan payment.
How to compute the implied yield when you have a discounted note (return on the cash you have into the deal).

I enjoy coaching people on the math so if you have questions let me know. I might even have short how two article from a note investor where they explain the details using both an HP and TI.

John Corey
Chelsea Private Equity LLC

Re: General math & interest rate ? - Posted by Kevin

Posted by Kevin on September 03, 2005 at 15:54:59:

Thank you Robin and Steve. Your prompt information has been a great help.
I went ahead and bought a TI BA 11 PLUS. I was a little disappointed to find the instruction book almost as big as DOW :slight_smile: but after searching the archives for “how to operate a financial calculator”, I was able to understand the concept within a short time. I’m ready to go out in search of my Lonnie Deals and will meet you again in my success posts!

Kevin

interest rate is appropriate/legal in Arizona? - Posted by Steve-AZ

Posted by Steve-AZ on September 02, 2005 at 19:00:38:

Hi Kevin,
I would just stick with the “industry standard”,12.75%
Your credit card company charges you at least double that.

corrected website for free download - Posted by Robin (OR)

Posted by Robin (OR) on September 01, 2005 at 23:07:38:

The correct website to download the calculator I mentioned in my last post is: hsh.com/hbcalc.html

Re: General math & interest rate ? - Posted by Robin (OR)

Posted by Robin (OR) on September 01, 2005 at 21:32:03:

I downloaded a free calculator from Wheatworks.com called Home Buyers Suite 2.2.05, put it on my desktop. It has lots of real estate related calculators but there is an easy one to use to calculate yield - After you download, install, and open the program, click on “calculators” then “quick calculators” then “missing loan variables”. Select the interest rate as the missing variable, enter the amount you have invested in the note as the loan amount (NOT the face amount of the note), then the number of months and the monthly payment, and it will calculate your yield. I know, it’s not the greatest because it’s not portable (I’m looking for a version to put on my handheld), and it probably can’t do all the functions that I will eventually want, but it’s a start. And it’s FREE (a good price) Works just like the charts in DOW.