From the course: Pre-investing: Before Investing in Real Estate
Join today to access over 23,200 courses taught by industry experts.
How much financing will Joe use? - Microsoft Excel Tutorial
From the course: Pre-investing: Before Investing in Real Estate
How much financing will Joe use?
- [Instructor] So Joe chose the property and then he decided to make an offer and the offer was accepted. His offer was for $5,000 above the listing price. He knew there were other bids there that were competing with him but, he thought 5,000 would be just right. So he ended up getting this deal and he also spoke with several banks and found out that one of the banks that he's going to go with is willing to offer him up to 80% financing at a 4% interest rate. Now Joe has the option to put in 20%, because that's the minimum required which would mean 28,000 out of the 140,000 purchase price. Or he has the option to put more. He can always put more down so he could put 28,000 down or up to 75,000, the total cash that he has available for investing. Now should Joe just put 20% down or put more? Maybe all 75,000 that he has into the down payment? Let's take a look. So here are the options that Joe is looking at, or two extreme options right? He has to put an at least 20% down and the most…
Practice while you learn with exercise files
Download the files the instructor uses to teach the course. Follow along and learn by watching, listening and practicing.
Download courses and learn on the go
Watch courses on your mobile device without an internet connection. Download courses using your iOS or Android LinkedIn Learning app.