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Payment Calculator: How to Calculate Loan/ Lease Terms on the Fly (for Land Investing)

When it comes to marketing land, many investors choose to offer two price points: one for a cash purchase and one for a purchase that includes terms.

Let’s talk about calculating the terms of a sale with seller financing.

Unless you have the Rainman-esque ability to calculate large numbers in your head on the fly, chances are that you will need a little help determining the monthly payments – especially if there is interest involved.

The Investment Dominator (with its built-in loan calculator) is here to save the day!

After logging into your Investment Dominator app and clicking on “Land Deals” tab, make sure that the property you want to calculate terms for is in the “Complete/Ready to Sell” status.

Then, hover over the ‘Options‘ icon on the right-hand side of the record and click the option that says “Payment Calculator“.

A new window will open that will allow you to enter in information about how you would like to structure the term sale.

The ‘Sale Price‘, ‘Down Payment/ Deposit‘, and ‘Annual Property Tax, and HOA/POA‘ fields are REQUIRED to have a value even if that value is 0.

At the top of the screen you will see a ‘Type‘ option which allows you to calculate either loan terms or lease-purchase terms.

If you select the ‘Lease Purchase‘ option notice that you can enter an optional ‘Deposit‘ amount that is is added at the time of signing, but is an amount charged in addition to the lease-purchase terms and that under the optional ‘Base Rate‘ field you can calculate a monthly Rent Payment that is above the amount earned as a Rent Credit.

IMPORTANT NOTE: Lease Purchase Notes do not factor in an interest rate; however, the ‘Base Rate‘ allows you to calculate a Rent Payment that is higher then the amount earn each month as Rent Credit. If you enter in 0 under the ‘Base Rate‘ field then the monthly Rent Payment will equal the Rent Credit amount.

NOTE: The “Taxes and HOA/POA” field refers to the total ANNUAL dues for property taxes and HOA/POA fees for that property. The system will prorate these by month and add it to the total monthly payment due to the buyer.

After you put in the information (both required and optional), click on the button that says “Summarize Terms” and the system summarize the details of the term.

Click the ‘Back‘ button to go back to the previous screen to make adjustments.

Click the ‘Copy To Clipboard‘ button to copy the contents of the Summary Page to your computer’s clipboard.

Click the ‘Create New Loan‘ or ‘Create New Lease Purchase’ button to set up the note.