Moses Lake discussed on BiggerPockets Real Estate Podcast


And it's close to the water. That's over in a little area called Moses Lake. If you're pretty familiar with that area. I know very little about that area, but I know it's beautiful. Most people think of it as an old tourist town, which it used to be their accurate. But today, there's a lot more that meets the eye for folks that drive through. So talking about those two deals. So both of those deals owner financed the majority and then had to bring ten to 15% for a down payment, and then you raise that, you said by talking to other people who have the capital and then you turn that into a second mortgage, like the second note against the property. Can you talk a little bit about how you structured those seconds? Like what the interest rate was and how you're paying that back? Yeah. So I paid 12% interest only on those, which some people would say absurd in the right. So it's a lot of interest. And there was a point where half a $1 million and 12% money, which was very expensive, and I don't recommend it. However, it got out of that. So basically 12% interest, I pay 1% or whatever I borrow a month. And so my first two deals, I've borrowed a quarter $1 million, I was paying $2500 a month in interest. And most people would say that it's ridiculous that it costs so much money. I'd argue that it costs a lot more money not to get started. And both assets, cash flow at a $1000 a month or more, day one, net of everything..

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