Getting loans.. (WAY off topic)

[Pat Ford]

Previously, you (Todd....!!) wrote:
> If ya calulate the interest on a $1,000 loan with an APR of, what, 10%
> MAX.
> 
> Multiply $1,000 by 10%, this equals $100, then divide the $100 by 12
> months in a year, this gives ya about $10/mo interest MAX.

I think you may be forgetting that this is compounded interest

using the rule of 72 the time required for the interest to double 
is 7.2 years which is around $11.58

> 
> The entire loan only lasts about 6 weeks so thats about $15 MAX for
> interest, however, since the loan is a SECURED loan SECURED with CASH
> MONEY in THEIR BANK, the interest rate should be less than a normal
> unsecured loans' interest would be... so the interest lost would be
> minimal...

once you remove that deposit from the bank the loan is no longer a 
secured loan. most banks ask that a deposit use as collatural be 
"hypothicated"(sp??) which means it's still yours but you can't have
it. ( I bought a house while unemployed, the house was $120K, we
had $70k, and the bank made us deposit $10k and hypothicate the 10K
as security for mortgage payments) weird but true 

> 
> THEN we must look at the BIG picture, we're building a repore with a
> bank which in the end will allow us to borrow money thru unsecured
> loans, which will allow us to purchase propertis that we would otherwise
> be unable to purchase....

banks up here have NO LOYALTY you are a cash cow once your milked off to 
the slaughterhouse

> 
> The siz week loan period is to get within the visible loan length range
> where the banks and other lending institution will notice the loans...
> 
> Any shorter length than 6 weeks will go unnoticed by most banks...
> 
> Then the SUPER big picture is to be able to fund a f.i.'d twin turbo
> 451/440 project for the Superbee.... which is why I'm here learning as
> much as I can before doin any buying or investing in parts.....
> 
> Take it easy!,
> 
> Sincerely,
> 
> Todd....!!
> http://www.c-com.net/~atc347/toddlnk.htm
> 
> William T Wilson wrote:
> > 
> > On Thu, 27 May 1999, Stegbauer, Michael wrote:
> > 
> > > > Will be goin out and gettin loans using this $3,000 as my collateral in
> > > > several banks in series, i.e. deposit the $3000 in one bank, get a loan
> > > > using it as collateral, take the loan money from the first bank, deposit
> > > > it into another bank, get a loan on that money etc....
> > 
> > A stunt like this will cost you a fortune in interest.  However, it's
> > mathematically sound.  Basic economics class will demonstrate that exactly
> > the same phenomenon is already at work and makes the banking system go.
> > 
> > It is marginally useful for building credit references, but otherwise,
> > won't do you much good.  The credit bureaus know how much money you have
> > loaned out total, and they know how many loans you have, too.  And, of
> > course, you have to pay the interest on the total amount you have
> > borrowed whether it is in small or large lumps.
> 
> 

--
Pat Ford                           email: pford at qnx.com
QNX Software Systems, Ltd.           WWW: http://www.qnx.com
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