Fortress Financial Group fka FFGO

[bobbybdb]

Wow, This is a typical hard money loan, I don't believe they have given the entire story here.

There no doubt was up front points to pay at least 1% maybe more, plus closing fees which are normally 2 to 3 % with a 1 % per month payment interest only, all due and payable March 30 2011.(BALOON Payment)
(1% per month = 12% per annum)
So $500,000 x 1 point and closings = at minimum 3%

3% of $500,000 +15,000 so the loan balance @ 1% per month payment would be $515,000.00, $5,150.00 per month interest only.

So lets see the cost of this money for one year.

$5,150.00 X 12 = $61,800.00 Like I said hard money, I wonder what was used for collateral

I surely hope it's worth it?

Just sell the mineral rights and get on with it. What is this putting the company in a stronger position? I thought that the negotiations were complete and the company was trying to help the buyer close the deal.

Needless to say, I really don't like what just happened IMO.