Hi All,
I just completed financing on a property in the US. I found a private lender in Kansas City, that assisted me in locating a property and providing financing at a 9.5% rate on a 5 year term. It will enable me to purchase more property with the capital I am working with. They didn't need a credit rating like most in the US. I also only financed 50% of the sale price, I will see a little upfront cashflow, but will be completely paid off in 5 years. My long term goal was to acquire as many as I can and have them paid off in a few years, to have a decent retirement. I hope to purchase a few more by the end of the year.
MJ
MJ – great news!
Can you share more info on this deal and lender?
Ajay
Hi Ajay,
I bought the property for $42,000 and I put $21,000 down. I financed the remaining $21,000 at 9.5% on a 5 year term. The payments are roughly $430. Rent on the property I purchased was $825. After management fees, taxes and insurance, I am left with about $225 positive cashflow. But my long term is to have everything paid off within the 5 year term by using the rent money. This should help me purchase more property instead of only a few with cash. The loan is set up on simple interest, so the more paid towards principal each year the more money goes in my pocket year after year. Upfront cash flow should go up at least $100 every year. <moderator: delete advertising>
MJ
Hi MJ,
Are you able to tell us what bank the loan was through?
Jamie.
Hi Jamie,
It was a private lender. I just received more info that they have another program that is a 3 year arm with a 30 year amortization at 9.875% and they will extend another 12 months if the loan is in good standing. This will allow more cashflow upfront if I need it.
MJ
MJ,
Great Deal !!!! $42K and $825 a month? this is about 23% Gross?
So, you didn’t need and renos?You are based in KC anyway, do you?
Mosqui
Mosqui,
After taxes, insurance, and management fees it nets around 19%. All the renovation was complete if that is what you were asking. And yes I am based in Kansas City.
MJ
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