I'm confused about that 40K van purchase lending scenario you laid out. You said that you: 1. Bought your wife a new van and, "we spent like $40 grand"... 2. And then you said: "Instead of taking that $40 grand and using it to by that asset, I took that $40 grand and lent it out at 12%"... This is where my confusion begins because you just said you bought the van with the $40 grand, and then in the next sentence you say "instead of taking that $40 grand and using it to buy that asset, I took that $40 grand and lent it out at 12%"... Instead of buying what asset, the van you just said you used the $40 grand on? And then you go on to say at the end of it all you will have recouped your $40 grand AND you'd have the van. Please clarify for an old fog brain such as myself.
I financed the van through the dealership at 1.9%. The loan is about $650 per month. I lent the money out at 12%. The 12% interest rate yields $400 per month that I use to help make the car payment. So, I’m left with paying the $250 difference. When the loan is paid back from the van, I’ll keep the van with no loan. When the money I lent out comes back, I’ll have the $40,000 and the van. Usually when I lend money, it’s a 2-5 year term at 12%. So at the end of the 2-5 year period, the borrower will return the principal balance in a lump sum. Does that help?
Great video, thanks for the info!
What are the legal steps to setting up a private money business?
I'm confused about that 40K van purchase lending scenario you laid out.
You said that you:
1. Bought your wife a new van and, "we spent like $40 grand"...
2. And then you said: "Instead of taking that $40 grand and using it to by that asset, I took that $40 grand and lent it out at 12%"...
This is where my confusion begins because you just said you bought the van with the $40 grand, and then in the next sentence you say "instead of taking that $40 grand and using it to buy that asset, I took that $40 grand and lent it out at 12%"... Instead of buying what asset, the van you just said you used the $40 grand on? And then you go on to say at the end of it all you will have recouped your $40 grand AND you'd have the van.
Please clarify for an old fog brain such as myself.
I financed the van through the dealership at 1.9%. The loan is about $650 per month. I lent the money out at 12%. The 12% interest rate yields $400 per month that I use to help make the car payment.
So, I’m left with paying the $250 difference.
When the loan is paid back from the van, I’ll keep the van with no loan.
When the money I lent out comes back, I’ll have the $40,000 and the van.
Usually when I lend money, it’s a 2-5 year term at 12%. So at the end of the 2-5 year period, the borrower will return the principal balance in a lump sum.
Does that help?
yeah like they help you , then charge 10,000 dollars 3 months later for the loan... Never again