Posted by CarolFL on April 19, 1999 at 09:04:27:
.
Guess what I am gonna do with Lonnie Deals - Posted by Mike Oldfield
Posted by Mike Oldfield on April 19, 1999 at 07:25:50:
I have a private investor looking to put some cash to work. He has heard about my investment activities from my mom I think. He calls me up and says “next time you need some capital come see me.”
I say “What do you require for documentation?”
He says " All I need is a spread sheet showing the cash flow on the deal I am going to use to pay him back.
I say “What rate of interest are you looking for?”
He says “10%”
We go on to Terms etc.
We set up a $50,000 line of credit. For Lonnie Deals that go som’em like this
Purchase mobile for $3000
Sell financed for $6000 with $1500 down.
$1500 net cash tied up financed by Lucky Mike’s new found line of credit at 10% interest.
$4500 balance financed at 12.95% interest etc. 36 months PMT $151.50
End result I can put together 33 deals (50K/1.5K) with total notes receivable at $148,500 (33x$4500)
Monthly Gross on Notes Receivable 33 x $151.50 = $4999.98
Monthly Credit Line Payment $1613.36
Monthly Net $3386.62
Times 12 months x12
Equals Annual Profit Before
Insurance Advertising Taxes and Gasoline $40639.44
I love paper!
Good Luck Creative Collegues
Mike Oldfield Rides Again!
Re: Guess what I am gonna do with Lonnie Deals - Posted by David S
Posted by David S on April 19, 1999 at 09:40:14:
Mike, great idea. The only problem I can see is the $1500 downstroke. It does happen, but not very often. Perhaps $500-750 (or approx 10% down) would be a better average for your calculations.
Slows it down considerably, but still “good nuff”.
David S