Hi a promissory note is this you pay someone a monthly payment with interest for so many years untill the balance is paid off. Then you own what ever it is you bought free and clear.
Here is an example. I bought my first business for $200,000. I gave the owner $30,000 down and the remaining balance, $170,000 was financed through a promissory note, created by my lawyer, for 5 years at 6% interest.
My monthly payment was $3366.21 that included interest, and I payed that amount every month for 5 years. After the 5th year I owned the business free and clear and put that money in my pocket every month on top of my regular pay.
Most promissory notes will have "clauses" in them stating if your payment is 5,10, or 15 days past the due date, there is a late fee of, for example 5%.
and if you are 30-45 days late on a payment you are in defult to where the holder of the note can demand the remaining of the balance due, and if you don't pay the owner re-takes ownership of the property. basically, you loose your business, property, or veichle.
A promissory note is a written promise to repay a loan or a debt under certain terms. It can be under demmand or a specific time. Much success to you......Lubertha
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"GOD IS STILL IN CHARGE, HE IS THE AIR WE BREATHE"
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Hi a promissory note is this you pay someone a monthly payment with interest for so many years untill the balance is paid off. Then you own what ever it is you bought free and clear.
Here is an example. I bought my first business for $200,000. I gave the owner $30,000 down and the remaining balance, $170,000 was financed through a promissory note, created by my lawyer, for 5 years at 6% interest.
My monthly payment was $3366.21 that included interest, and I payed that amount every month for 5 years. After the 5th year I owned the business free and clear and put that money in my pocket every month on top of my regular pay.
Most promissory notes will have "clauses" in them stating if your payment is 5,10, or 15 days past the due date, there is a late fee of, for example 5%.
and if you are 30-45 days late on a payment you are in defult to where the holder of the note can demand the remaining of the balance due, and if you don't pay the owner re-takes ownership of the property. basically, you loose your business, property, or veichle.
hope that helped!
What doesn't kill me,,makes me stronger!
Thanks alot now it makes more sense
There are so many terms in the REI business and also learning something new each day.
Warm regards,
Paul
thank you for words of encouragement.
A promissory note is a written promise to repay a loan or a debt under certain terms. It can be under demmand or a specific time. Much success to you......Lubertha
"GOD IS STILL IN CHARGE, HE IS THE AIR WE BREATHE"
Promissory Note = Contract! Your only down-fall would be...A priority note!
Invest in yourself!