Ok, I’ve read books, articles, websites, forums… haven’t put it all to use yet, but now I am trying. I’ve been sending out 10-15 emails per day every single day trying to find people willing to sell their home with a lease option. And along the way, I found a guy trying to sell a note.

He owner financed a home for a little over $16000, got $6000 down payment from the guy, and did the financing for $375 for 30 months. The buyer has paid 3 months so far, and now the seller is trying to get $5000 for his note on the home. There is $10125 left on the note if my math is right.

So please correct me if I’m wrong. If I buy this note for $5000, and get payments of $375 for the next 27 months (2.25 yr) I will have turned $5000 in to $10125.

What will be the percentage APR I earn on my $5000?

And what kind of loan can I get for this if I want to leverage? I have $4000 cash, but I like to keep a cushion. So if I need to come up with $2000 for this deal, how can I?

Thanks in advance for all replies and advice!

(Edit: Somehow, I came up with 67.97 APR… is this real?!)