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Hello, my name is Penny Smith, and I'm a North Carolina real estate broker. The topic today
is how to master real estate math. Well, that's a pretty big topic. And what I have to say
is, I highly recommend that you take the real estate courses in order to master the real
estate math. There's a lot to the real estate math, from a HUD that is the final form that
has all the numbers on it that an attorney would give you at closing. Knowing how to
calculate the numbers on that HUD is very tricky. The amortization tables, to prorating
the taxes, prorating the...everything on that house. There's lots of different things that
are prorated, whether you go back thirty days or go ahead thirty days, that will be on the
HUD. For instance, the interest on the loan. The interest on the loan is prorated thirty
days in advance because your payment's not due for thirty days....thirty full days till
after you closed on that home. The government has to give you...the institution, the mortgage
institution must give you thirty days before they charge you for your first payment, or
you're going to pay for that interest of those thirty days. It's not free, you don't get
that money for free. But you have to prorate it, and you have to amortize it and put it
on the HUD. So I highly recommend that you let a real estate attorney help you with that,
and trust that they know what they're doing. They have computer programs that do it for
you. And that's my recommendations for how to do real estate math. Thank you.