Periodic Compound Interest Calculator
Using the substance interest formulation, calculate primary plus interest or principal or rate or periods (time). Periods are any time products you want as long as you are consistent using the same base time units for periods and interest. Remember that rate R, r and time t should be in once devices such as weeks, years or quarters. R/100 and calculated in decimal form. Compounding occurs once per period in this basic compounding formula but other calculators allow compounding more often than once per period. Weisstein, Eric W. “Compound Interest.” From MathWorld–A Wolfram Web Resource.
The magic is that I want to get my money out with a down payment. I’ll go half a year out to get my capital back again Maybe. 449 per month at 9% interest over the next 84 months. No renters, no rehabs, no renovations, no rodents. We use a land contract as opposed to a deed of trust.
That property remains in my own ownership until they pay off their note. We might have, let’s say in a good overall economy of 4% default rate and in a bad economy an 8% default rate. Even if they default, I’ll get another deposit. We get another monthly payment and 90% of this is automated with software. What were you doing before this model was built by you? 500 million enterprise value, so nothing big too. I had developed a 45-minute commute to work and back.
I was micromanaged. It was stressful. I had no control. It was an extended sale cycle. It got so bad for me that I wouldn’t get the Sunday blues anticipating Monday coming around. I’d get the Friday blues anticipating the weekend going by fast and needing to be back at the job on Monday.
- Education expenditures
- Loan loss
- Major changes in market dynamics and competitive landscaping
- Applicants must score 70% or better to pass the exam
- Promotes maintenance of and investment in these human relationships (a bind function)
My firm hires this guy and he explained that as a part hustle, he was buying up raw land, pennies on the dollar at tax deed auctions, flipping them online. This is the 12 months 2000 and making a 300% return on his investment. A great company has 15% EBITDA margins or free cashflow and average companies, 10%. All day long I was taking a look at companies, less than 10%. I didn’t believe him.
I proceeded to go with him to New Mexico in this tax deed auction. 3,000 I preserved up for car repairs. I did what he said to do exactly. 300 each. I online put them up. 1,200 each. It worked well. I took all of that money and I went to another tax deed public sale in Arizona where I reside in Southern Arizona.
2,000, no-one was in the room. I was buying up lots. I used to be buying off acreage. Over another six months, I sold all of that property. 90,000 in cash. I went to my wife and I was like, “I’m heading to give up my job and I’m going to become a full-time land buyer.” She said, not “Absolutely. ” She was pregnant at the time.
I said, “Fine.” It required about eighteen a few months for the natural land trading business to go beyond the investment bank income and I quit. I’ve been doing it full-time ever since. I wish to understand how that relates to your land investing and how that’s connected. You get to a point in real estate where you realize other people’s money is important because the only reason to have a account is the scale.