This week’s question comes from Neil on the Real Estate Rookie Facebook Group. Neil is asking: I’m reading a book on financing strategies — if a loan is amortized over thirty years, how is there a balloon payment at fifteen years? What’s the difference between the two?
Most real estate investors don’t run into things like balloon payments until they’ve started taking loans from private lenders or use seller financing. Balloon payments allow investors the chance to refinance earlier or pay off a loan in its entirety while also giving a seller or lender the cash they want.
If you want Ashley and Tony to answer a real estate question, you can post in the Real Estate Rookie Facebook Group! Or, call us at the Rookie Request Line (1-888-5-ROOKIE).
Ashley Kehr:
This is Real Estate Rookie episode 134. My name is Ashley Kehr, and I’m here with my co-host, Tony Robinson. Tony, can you tell everyone what this podcast is?
Tony Robinson:
Ashley, I would love to that is my absolute favorite part of this show is introducing the new listeners to what we do here at the Real Estate Rookie. But we are here to focus on the very beginning of your real estate journey, and we do that because we always stop and say, “Wait, explain that. Let’s drill down on that,” and we don’t just gloss over a lot of those beginner terms, because we know that those are the things you need to know to really jumpstart your investing career and find financial freedom through real estate investing. So that’s what we do, Ash. What do you think? Do you agree? Am I on target?
Ashley Kehr:
Yeah. So whether you are trying to get your first deal or learn what real estate investing even is, or trying to get your next deal, you have come to the right place. If you guys have a specific question for us, leave us a voicemail at 1-888-5ROOKIE and we may play it on the show. So on today’s episode, our Saturday episodes, it is the wonderful Rookie Reply where we take your guys’ questions and we…