Bank Equity | Slide 9: Using as a Bank

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— Slide 9: Using Your BLOC as a Banker —

Let's Demonstrate How You Can Become a Bank

Say your child just graduated from college and landed a great job. H/she wants to finance a car purchase for $15,000; but it will require you to co-sign for the note. The loan terms are as follows:

Loan Amount: $15,000
Bank Rate: 7.45%
Repayment Term: 48 months
Monthly Payment: $362.33

You have two options:

1: Co-Sign for the Note:

you can co-sign for the auto loan and let your child make the monthly payments as scheduled. The bank will earn all of the interest paid on the loan.

If your child misses a payment or two, your credit record will reflect that (since you are the co-borrower).

If your child fails to make scheduled payments, the bank will require you to make the payments.

2: You can use your BLOC to Finance the Auto:

you can use your BLOC to finance the auto. Your child will be responsible to you for the monthly payments. All of the interest on the loan will be coming to you.

In the event your child misses a payment or two, your credit record is protected since your income deposits are constantly paying your BLOC account.

If your child fails on the loan, you are in a better position since you will be paying your BLOC instead of the bank.

Example:

BLOC Account Starting Credit Line Balance: $60,000
Month	BLOC Activity		Advances from BLOC	Payments to BLOC	Balance Owned
Aug Beginning Balance					$500
Aug	BLOC	Advance on Auto	$15,000		$15,500
Aug	BLOC	Living Expenses	$4,000		$19,500
Aug	Pay	Paycheck		$5000	$14,500
Aug	Pay	Auto Payment		$362	$14,138

Total Month Activity			$19,000	$5,362	$14,138

Sep	Total Activity		$4000	$5362	$12,776
Oct	Total Activity		$4000	$5362	$11,414
Nov	Total Activity		$4000	$5362	$10,052
Dec	Total Activity		$4000	$5362	$8,690
Jan	Total Activity		$4000	$5362	$7,328
Feb	Total Activity		$4000	$5362	$5,966
Mar	Total Activity		$4000	$5362	$4,604
Apr	Total Activity		$4000	$5362	$3,242
May	Total Activity		$4000	$5362	$1,880
Jun	Total Activity		$4000	$5362	$518
Jul Beginning Balance					$518
Jul	BLOC	Living Expenses	$4000		$4,518
Jul	Pay	Paycheck		$5362	$(844)

Total Year Activity			$63,000	$64,344	$(844)

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BANK EQUITY to manage money

[view]Introduction
[view]Slide Demo
[view]SL1: Summary
[view]SL2: Use as Money
[view]SL3: Deposits
[view]SL4: How to Use
[view]SL5: Fund Needs
[view]SL6: About %
[view]SL7: Emergency
[view]SL8: Get the Facts
[view]SL9: Be a Bank
[view]SL10: Next Steps
[view]BLOC for the Home
[view] 10-Step Success Plan

[view] Home Market Valuations
[view] LTV Calculation
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