David Campbell, professional real estate investor and developer teaches us how to calculate interest, rate, and capital for any real estate transaction.
7. daily interest rate =
annual rate / # of days per year
borrowers like to prorate using 365 days
10% annual interest /365 days = 0.0274% per day
lenders like to prorate using 360 days
10% annual interest /365 days = 0.0278% per day
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8. CALCULATING PRORATED INTEREST
0.0277% per day
daily interest rate
x 108 days
x number of days
x $100,000
x principal
$2,991.60 prorated
prorated interest
interest
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9. David Campbell
over $800 million of real estate
transaction / advisory experience
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