Can you go over loan pricing for commerical loans? what actual vs 360 means etc, how commerical loans operate etc usually they renew every 5-7 years etc
wow honestly i watched so much video but .. you explained simple and made me understand about amortization , partially amortization , interest only and Negative Amortization in 3 min... Thank you so much!
So the best thing to do is make some large principle payments and kick the amortization down the road and pay off your 30 years in under 10. Don't let the Banks rob you.
@@RealEstateFinanceAcademy There is one thing, that I do not understand. Why the loan has a 30years amortization, while the loan term is 5 years only? Is that just because the buyer has lower payments and pays more at the end as a balloon payment? And when it will be 5yrs amortization and 5yrs loan terms, it's going to be a much higher monthly payment and no balloon payment at the end. Am I correct? I'm working on an offer for a business with seller financing terms (I want to buy a business), so I'd like to be able to present that offer. And the main advantage for the seller is taxes to be paid monthly and get 4% p.a. right? Thank you for your time :)
@@LukasNachtigall Hi Lukas. Yes, you are correct. Loans with a term shorter than the amortization that end with a balloon payment are quite common. The amortization only changes how much principal is paid each month. The amount of interest is not affected. So, for example, if no principal is paid (aka interest-only) then the interest payments would be the same every month and the balloon payment would be equal to the original loan amount. If you are working on proposing seller-financing, then you should consider asking for interest-only terms until you are able to increase the value of the property and refinance. Interest-only terms may benefit the seller as well, since they may have to pay capital gains taxes on any principal they collect from you. So it could be a win-win for both of you. (I'm not an accountant, so this is not tax advice. Be sure to talk with a CPA prior to making an offer.) Hope this helps! - Trevor
Is there amortization where you can pay extra(when you can) and have the monthly go down a certain way to where by the time "x" gets to 30, "y" will be 0 and the monthly payment won't lessen past ±33% of where it started at day 1. This seems like it'd be better for everyone involved. If not, why?
What lessons or concepts would you like me to teach you? Tell me below! - Trevor
Can you go over loan pricing for commerical loans? what actual vs 360 means etc, how commerical loans operate etc usually they renew every 5-7 years etc
wow honestly i watched so much video but .. you explained simple and made me understand about amortization , partially amortization , interest only and Negative Amortization in 3 min... Thank you so much!
My pleasure! Happy to help! Thanks for the feedback. - Trevor
Well that was easier than I thought thanks guy!
You're welcome! Happy to help! - Trevor
Jesus I’ve just discovered your videos and this is best visualization and explanation I’ve seen on the internet
Thank you for the nice comment! Much appreciated! I’m glad you found it helpful. - Trevor
you explained that so perfectly! thank you so much!
You're so welcome! Glad it was helpful. - Trevor
how do you write backwards tho?
He probably just mirrors the video while editing
I was wondering the same thing
very helpful. . thanks man 👍🏻
Spot on, very helpful
Is there a product that front ends principal payments at the start and interest at the end?
Good question. No, interest is paid always first.
So the best thing to do is make some large principle payments and kick the amortization down the road and pay off your 30 years in under 10. Don't let the Banks rob you.
Awesome explanation! :)
Thank you, Lukas. Glad you liked it! - Trevor
@@RealEstateFinanceAcademy There is one thing, that I do not understand. Why the loan has a 30years amortization, while the loan term is 5 years only? Is that just because the buyer has lower payments and pays more at the end as a balloon payment? And when it will be 5yrs amortization and 5yrs loan terms, it's going to be a much higher monthly payment and no balloon payment at the end. Am I correct? I'm working on an offer for a business with seller financing terms (I want to buy a business), so I'd like to be able to present that offer. And the main advantage for the seller is taxes to be paid monthly and get 4% p.a. right? Thank you for your time :)
@@LukasNachtigall Hi Lukas. Yes, you are correct. Loans with a term shorter than the amortization that end with a balloon payment are quite common. The amortization only changes how much principal is paid each month. The amount of interest is not affected. So, for example, if no principal is paid (aka interest-only) then the interest payments would be the same every month and the balloon payment would be equal to the original loan amount. If you are working on proposing seller-financing, then you should consider asking for interest-only terms until you are able to increase the value of the property and refinance. Interest-only terms may benefit the seller as well, since they may have to pay capital gains taxes on any principal they collect from you. So it could be a win-win for both of you. (I'm not an accountant, so this is not tax advice. Be sure to talk with a CPA prior to making an offer.) Hope this helps! - Trevor
Thank you so much
You're most welcome! Happy to help! - Trevor
Useful video 👍
Is there amortization where you can pay extra(when you can) and have the monthly go down a certain way to where by the time "x" gets to 30, "y" will be 0 and the monthly payment won't lessen past ±33% of where it started at day 1.
This seems like it'd be better for everyone involved. If not, why?
Yes just pay your mortgage (and write another check that says principal only)
Awesome video
Thank you! 😊 - Trevor
Can you do a loan with 36 months and 24.31% 157 monthly payment
I don’t understand your question. Can you elaborate? - Trevor
透明黑板好评
谢谢！;-) Trevor