1. The following three one -year "discount" loans are available to you:
Loan A: 0,000 at a 7% discount rate
Loan B: 0,000 at a 6% discount rate
Loan C: 0,000 at a 6.5% discount rate

a. Determine the dollar amount of interest you would pay on each loan and indicate the amount of net proceeds each loan would provide.Which loan would provide you with the most upfront money when the loan takes place?

b. Calculate the percent interest rate or effective cost of each loan. Which one has the lowest cost?

2. Assume that you can borrow 5,000 for one year from a local commercial bank.

a. The bank loan officer offers you the loan if you agree to pay ,000 in interest plus repay the 5,000 at the end of one year. What is the percent interest rate or effective cost?

b. As an alternative you could get a one-year, 5,000 discount loan at 9% interest. What is the percent interest rate or effective cost?

c.Which one of the two loans would you prefer?

3.At what discount loan interest rate would you be indifferent between the two loans?

3. Rearrange the following accounts to construct a bank balance sheet for Second National Bank. What are the total amounts that make the bank’s balance sheet balance? (m=million$)

Demand deposits :million
Cash assets: 5 m
Loan secured by real estate: 30m
Commercial intdustrial loans : 18m
Owner’s capital:6m
Government Securiies owned: 7m
Bank fixed assets:14m
Time and saving depos: 40m
Federal funds purchased: 6m
Other long term liabilites: 2m

Thank you!!!!

I can’t believe how misinformed and easily manipulated people are. Some people still think the Dems were solely responsible for the mortgage blowout because they FORCED banks to give bad loans.

What a crock of crap–the banks freely and willingly peddled trillions in bad loans because they were making truckloads of $$$$$$$$$$$$$$.

The sub-primes for minorities were a minuscule portion. Think about it, the are MINORITIES and many of those mortgage had LOW balances because much minority real estate is valued way less than the rest of the nation.

Also, Fannie and Freddie only do RESIDENTIAL mortgages. What about all the commercial mortgages that went belly up.

I have searched and talked with so many different organizations about getting a business loan including SBA, commercial banks, and state funded organizations set up for funding small business owners. I have the business plan, the statistics for future sales and I have the collateral. What I don’t have is money for a down payment even if it’s only 10%. My other questions is regarding real estate. Do you need a down payment if you are buying a business already set up? Thanks in advance for any advice and/or encouragement.

I’m thinking about co-signing a mobile home for my mom, how will it show up on my credit report? As real estate or a personal loan?? Will I be able to rent an apartment with this on my credit report??

I am not sure if it is saying the owner owns the majority except for so and so piece of property which is a joint venture with a bank???

Well I know banks aren’t in the real estate business which is why this part doesn’t make sense to me. Is it because someone else had bought a certain plot from the owner with a loan and it got reposessed or what? Please help me clarify as I am interested in the piece of land that it is saying (I think) that the bank owns. This is the ad:

+/- 27.29 Acres of Land Owner Financing / Joint Venture Opportunity Bank owned property +/- 1780 Linear Feet of Frontage on I-10 +/- 750 Linear Feet of Frontage on N Caldwell St

Thank you for your feedback!

Documents show Wright sold the property to his church, Trinity United, in December 2006, with the proceeds going to a living trust shared with his wife, Ramah.

But further investigation with tax and real estate attorneys showed that the church had actually secured a .6 million mortgage for the home purchase, and attached a million line of credit, for reasons unspecified in the paperwork.

http://elections.foxnews.com/2008/03/27/obamas-former-pastor-builds-a-multimillion-dollar-retirement-home/

on top of the proceeds he also got a 10 million line of credit
Do you realize how many needy familys that would help?

I’m looking to purchase a 13 unit investment property. This will be my first property. A friend suggested getting a HUD commercial loan since I don’t own any real estate. What do you guys think about that? What would be the best way to go for a loan?

Thanks.

My husband and I are scheduled to close on our first home on March 28th, so five days away. It is a 1,941 square foot home in Fort Worth, Texas. We were approved for a 15-year FHA loan at a 5.5% fixed interest rate. The builder had the house listed at 3,990 and said they were discounting it to 7,990 because they are trying to meet their quotas and their year end is March 31st. Our realtor and his wife are both in the real estate business. He is a realtor and she is a broker, so they are getting a big commission off this deal with the builder. The realtor is going to pay off apartment lease (0 per month and we have 3 months left), and pay two mortgage payments for us at ,511 and some change. We both have fairly low credit scores (mine 534 and my husbands 575), but we got 100% financing. They are rolling our closing costs, appraisal fees, etc. into the loan.

Does this sound like a good deal? Is there anything that sounds fishy?

I NEED TO RECIEVE A 25,000 DOLLAR LOAN FOR INVENTORY. I HAVE MY BUSINESS PLAN TO SHOW THE DETAILS.MY CREDIT SCORES ARE 618,642,& EQUIFAX DOESNT HAVE A SCORE FOR ME.I ALSO NEED A LOAN TO PURCHASE FIXER UPPER REAL ESTATE. MY OLDEST CREDIT LINE IS SIX MONTHS.I HAVE NO FORCLOSURES,OR BANKRUPTCIES.I HAVE ONE NEGATIVE ACCOUNT ON MY CREDIT REPORT THAT DOES NOT BELONG TO ME,I AM DEALING WITH THE COMPANY & CREDIT COMPANIES NOW TO REMOVE IT.

My sister put money down on a home that was listed as residential property, it was infact a duplex that she planned on moving into both halves and eventually making it into one home. She got approved for the loan, sent the check to the insurance company, and put the money down, and when she got it appraised, the guy told her that it was commercial property and couldn’t get the house unless she put 20% down. She cannot do that, and the insurance company and real estate places have already cashed their checks. She is very interested in owning this home, what can she do? (it was listed as residential property i believe, this is her first time buying a home, and she needs a big place.)
The house is listed as residential-multifamily, and the appraiser came in and said it was commercial. It is located in eau claire, so is there anything that she can do?

http://www.washingtontimes.com/news/2008/oct/18/whistleblower-hits-obama-friends-appraisal/

"In a complaint filed Thursday in the Circuit Court of Cook County, Kenneth J. Connor said that his reappraisal of Rita Rezko’s property was replaced with a higher one and that he was fired when he questioned the document.

Mr. Connor, a real estate and commercial credit analyst at the Mutual Bank Corp. in Chicago, also noted in the complaint that the bank received a grand jury subpoena in October 2006 requiring it to produce information concerning Mrs. Rezko’s purchase, including the bank’s files on the property.

The complaint also said that the grand jury wanted information on Mrs. Rezko’s checking account and loan file and that the Federal Deposit Insurance Corp. (FDIC) had audited the Rezko file – although Mr. Connor’s lower reappraisal had been replaced with a higher amount. "

Does anyone need a 10+ million hard money loan? Specifically in the real estate or construction sector?

I am a bit frustrated. I have been in sales for about 10 years, auto sales, then mortgages(loan officer and an account executive for a lender) The company I worked for recently went out of business and I have been looking for a golden opportunity to come my way, but it is much tougher than I thought. It may sound cliche, but I don’t really care what I am doing, to an extent, if the money is there. I have been looking into pretty much all sales fields, insurance, real estate(commercial and residential), medical sales, recruiting, investments, etc, but have not found what I am looking for, which to tell you the truth I am not really sure what that is. I am still young(28) and am willing to start over in an industry and pay my dues, I just don’t know where to look, as far as industry goes. I am a hard worker and am educated, I just want a career with a lot of potential. Any help? Thank you

I read somewhere that credit scores of renters (real estate) tend to be around 520 to 630, while credit card holders or other financial credit customers much hight?

is it because there is less risk for approving tenants to rent a real estate (commercial or regular), as oppose to someone who has trade lines with a financial institution (like auto loans, bank loans, etc)?

Thanks

One question I have is whether a cap rate of 8% is good for a cap rate of 8% is good for this type of property:

Also, where do I find people interested in buying such a property? Can I contact you for more questions?

NET LEASE INVESTMENT

20,000 SF CENTER

BUILT 10 YEARS AGO

PROPERTY LOCATED IN AFFLUENT DEMOGRAPHIC NEIGHBORHOOD..MEDIAN INCOME ,000 PLUS.

WITHIN 1 MILE TWO REGIONAL HOSPITALS

ABOUT 200 FEET FROM WALGREENS.

TENANTS INCLUDE 4 MAJOR NATIONAL FRANCHISES..ONE REAL ESTATE..ANOTHER HAIRCUTS, ANOTHER TAX PREPARATION, ANOTHER COFFEED AND DOUGHNUTS AND A MAJOR NATIONWIDE INSURANCE COMPANY FOR HOME AND AUTO..
GREAT VISIBILITY & ACCESS

STOP LIGHT INTERSECTION

SELLER ASKING 4.5 MILLION DOLLARS

I’m looking to invest in real estate through hard money loans and after some research and talking to some advisors in the field I found that you only make profit on these type deals when they are sold since the property is being used as collateral.
I’ve also heard that you can refinance the property brought with hard money, but I didn’t think this was possible since its already being used as collateral with the hard money. Can someone please share their knowledge with profiting from hard money deals. Thanks in advance.

This is dealing with Real Estate

My current loan on some real estate is coming to term, and I want to extend for another term. Vacant land, good payment history, a lot of equity, good credit.
Edward, this doesn’t concern my vote. My vote will be…mmm…unconventional.
Wow, Howard! Not only can you can solve all my problems, you offers loan in my local currencies! I’ve been looking for a lender that provides loans at the best exchange for Pjhtra to US Dollar!

For Real Estate whether commercial or residential, refinance, construction, 2nd mortgage, investment, foreclosure buyback, secured or unsecured, personal, business, signature, and auto. If you can help please contact me via email me via my profile.

In the beginning of this week the government proposed the Private-Public Investment Plan that would potentially unfreeze credit markets by purchasing prominent banks toxic assets, or newly named "legacy assets". It will purchase legacy loans and legacy securities, both backed by real estate assets.

When the private investors and government purchase these toxic assets, what happens next? How are these establishments going to possibly profit from them? What will drive their price up or down?

I am sure it’s as simply as supply and demand, but how do these markets work?

Thank you in advance!
Brandon

I’m purchasing a car through an older gentleman this weekend. I am having my auto loan financed through my credit union, but the previous lien on the car is from a different bank. The title and loan for the car are actually in his son’s name, but his son had an accident in February and is brain-damaged for life. The man I’m purchasing the car from has power of attorney over his son to sell his real estate and property. What are the requirements for such a sale? What forms do I need? What should I know before going ahead with the sale? Can he transfer the title into his name without the loan being paid off?

Hi, I have heard of a "Personal finance Advisor" since I need help obtaining information on different loan "Opportunities" And help chosing a lender. [ I need something like the services of a "real-estate" agent but for loan information] Where can I find one ?? [ private]
I am in california [ southeren]

should we do to protect our savings?

http://www.the7thfire.com/Politics%20and%20History/Federal-Reserve.html

The whole house of cards, it’s impossible to stay up…there’s not even enough currency in flow to cover bank deposits…..what should we do?

Buy real estate? Invest in foreign currency?

In the beginning of this week the government proposed a plan that would potentially unfreeze credit markets by purchasing prominent banks toxic assets, or newly named "legacy assets". It will purchase legacy loans and legacy securities, both backed by real estate assets.

When the private investors and government purchase these toxic assets, what happens next? How are these establishments going to possibly profit from them? What will drive their price up or down?

I am sure it’s as simply as supply and demand, but how do these markets work?

Thank you in advance!
Brandon
anybody???……..

I am based in Jacksonville, Florida but I want out of the state and into a real city. my desire is to work in sales or marketing up North in Chicago or New york. I have my BS degree in Business Management and have worked as a marketing coordinator and in real estate as a private investor as well as a loan originator.

Any advise on strategy would be great.

I work full time, and make over ,000 as well. I received ~1,000 in fed aid, and took out a ~1700.00 private loan. I'm also paying off a previous school loan. I have not itemized in the past, and not sure what exactly I can write off or qualify even to write off. I rent as well. I have no real estate.
So I take a "credit" for education expenses. What would that knock off my bill, a grand maybe? I paid 800.00 for a summer course, and 200.00 for fall. I spent about a hundred dollars on supplies. I'm paying out of state tuition as well.
Can I write off

-rent
-car
-cell phone (primary phone)
-anything else?

I had asked this question in 'Real Estate', but it was suggested that I post it here has well. Unfortunately, my Mother was diagnosed with lung cancer at the beginning of the year, in her will, she has left her house to me, where my family and I currently live as we have cared for her for years. There is a loan on the house which is through a private lender, and there is no death insurance on that loan. The loan i

We missed this in our loan papers and our broker didnt tell us about this . We only knew about the pre payment penalty of 4%. we need to sell this real estate but the loan co says it will cost us 80k in interest. Is there any way out of this?

Potentially an obvious real estate question, but hey, it's Yahoo answers, so I'm free to ask all the silly questions I want here:

Instead of getting a costly mortgage with a lender like Countrywide, why can't I just go out and find someone with captial and say, 'Hey, would you give me a 0,000 loan at 4%, and I'll give you first lien on the house if the payments are default?' The deal is signed at a title company and I have an EFT draft created to deduct cash from my bank for each months payments.

The benefit to me is a smaller monthly mortgage payment.

The benefit to the lender guy is that he draws 4% for nothing, and he can potentially bag the house if I default (which would be very unlikely to happen).

PROs/CONs to this plan? And what am I missing that might be painfully obvious here?
(and no, I have no plans to do this. It's just something I've been kicking around. And besides, I wouldn't even know where to go to find a rich person willing to do this anyhow..:)

I have worked hard in the past year, and managed to raise my fico score to low 600.

I have only a few bills to pay off.
once I pay these off I will raise my score to get financing to invest in real estate.

Once I pay these off I could raise my score tremendously.
To do this I'm willing to pay a high interest rate.

Ae there any interested lenders?