Posted by Kristine-CA on March 10, 2011 at 17:44:24:
Brian: can you post more info about the note. Term of the note? You
say the first ten years and then you mention the borrowers have
already been paying for several years. Position? Is it a cash out 2nd?
Who is selling it and why. A 58K note over 10 years at the payment
you mention is 12.75% interest…but more details are needed to know
what you are being sold.
Buying a note - Posted by Brian_wa
Posted by Brian_wa on March 10, 2011 at 14:49:06:
I have an opp to buy the first 10 years of a note for 58k. Upon paying this 58k, I’ll get 862 a month in payments for the next 10 years. Property has great value and the borrower has been paying on time for several years now. The thing is I don’t even know the rate of return or present value to know if this is a good deal or not. Can someone shed some light?
Brian
Re: Buying a note - Posted by John Merchant
Posted by John Merchant on March 10, 2011 at 18:36:27:
As I’ve told you, I’d be glad to spend a few minutes drinking your coffee and showing you how to quickly solve any question on a note such as yield, actual I rate, Term, etc.