 # question about private money lenders - Posted by Stephanie

Posted by Scott(CA) on October 04, 2005 at 16:42:36:

I’d love to lend you money at that rate! In your example, it should be 12% PER YEAR, not per month.

Try .12/12*50000 = \$500 per month (interest only)

Some HML’s will also charge points and may have a prepayment penalty. 1 point would be equal to one percent of the entire loan amount. Assuming you had to pay points, you would be paying an additional \$500 per point (for your example).

question about private money lenders - Posted by Stephanie

Posted by Stephanie on October 04, 2005 at 16:25:27:

If I were to use a private money lender, what is a good formula to figure out the interest they would get back. Lets use and example of borrowing 50,000 at %12 for 3 months to do a rehab.

so is that

## \$50,000 x %12

\$6,000 a month?
then multiply that by 3 (for 3 Months)

So would that private money investor get back \$18,000 plus the origional \$50,000 for a total of \$68,000?

Is that correct?

Thanks again
Stephanie

12% = 1% per month nt - Posted by JJ

Posted by JJ on October 05, 2005 at 14:30:39:

.

Re: question about private money lenders - Posted by Marcia

Posted by Marcia on October 05, 2005 at 07:14:47:

Stephanie:

The formula is:

50,000 X 12% divided by 12 months = \$500.00 a month