Create the Perfect Payment Reminder Mail Format for Real Estate

Payment reminder mail format for Real Estate

hi everyone my name is paul pachesky and welcome to the real estate classroom youtube channel in today's real estate math video i'm going to show you how to calculate down payments it is something that you have to know for your real estate licensing exam so let's get to today's video [Music] okay so in today's video we're going to discuss how to calculate a down payment pretty important to know not only for the real estate profession but also there's going to be some form or fashion of a test question that's going to require you to calculate a buyer's down payment but before we get to that do me a favor give this video a thumbs up hit that red subscribe button click on the notification bell comments and questions down below i'd appreciate it in fact many of you have been commenting and asking your questions and that really helps grow this channel so please do that i'd appreciate it all right so let's get to calculating the down payment so first of all just starting with the basics what is a down payment a down payment is that initial upfront payment that a purchaser gives typically on expensive items and then they finance the rest with the lender so for example you may have a a home buyer that's going to purchase a home and they're going to put a certain percentage of of that money down certain down payment depending on the requirement of the individual loan that they're getting because remember if you watched any of the loan videos or the mortgage videos you learn that different types of loans require a certain percentage or different percentages of down payments so for example conventional they may require a 5 10 or 20 percent down those type of things but it's just that initial upfront uh cash payment um that they're going to pay at closing so let's look at a couple of different practice test questions that you may see and and what i'm trying to do here is given give you the because most of you i think know how to calculate a down payment but i want to kind of give you the format at which it may be asked because that may be important too so let's look at practice question number one tom purchased a parcel a parcel of land located at one two three main street his offer of two hundred thousand dollars was accepted by the seller because it's raw land the lender is requiring a 30 down payment how much will tom's down payment be so let's take a look at how we calculate that so we know uh that or the formula here is the purchase price which is 200 000 times 30 that will give us our down payment so we got all the numbers that we needed within that test question so let's let's uh do the multiplication so we're going to take 200 000 which is the the offer that's the amount that's been accepted or the purchase price that's been accepted by the seller and we're going to multiply that by the required 30 percent down now there's two ways to do it we can take two hundred thousand and multiply it by decimal three zero that gives us a down payment of sixty thousand dollars or you can take two hundred thousand multiply it by three zero or thirty hit the percent key on your calculator and it'll give you the same number which is 60 000 so the answer to practice question number one how much of a down payment will tom have to pay on his 200 dollar purchase and the answer is sixty thousand dollars now i'm going to throw in another question here because the test question may be phrased a little bit different so let's take a look at that tom purchased a personal a parcel of land located at one two three bain street because it's raw land the the lender is requiring thirty percent uh thirty percent down payment which equals sixty thousand dollars so what is or what was the purchase price so in practice question number one the test question wanted us to configure figure out what the down payment is here it wants to know what the purchase price is and to figure that out we do uh we take sixty thousand dollars which the test question gave us that figure that is the amount of the down payment and we divide it by thirty percent or decimal three zero and when we do the with calculations we take sixty thousand dollars which is the down payment we divide it by uh thirty percent again you can divide it by decimal three zero or you can you can divide it by thirty and hit the percent key either way you get a purchase price of two hundred thousand dollars and i highly recommend that while you're doing this actually i know i know we're going through the process here but use your calculator so you get accustomed to using that calculator studies show that when you're actually actively participating in the functions then you you retain the content a lot longer and better so okay so those are the two types of test questions regarding calculating a down payment that you're probably going to see on your real estate licensing exam if you're going to continue to study check out this real estate math video to my right and if you have not subscribed please do so click the little circle to my left and remember comments or questions down below i'll see you in our next video