From: northeast@stny.rr.com (John Keegan)
Newsgroups: misc.invest.financial-plan
Subject: Re: Flipping a Note at Closing - Investor Please Read!
Date: 15 Aug 2003 18:25:04 GMT
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At closing with the seller, the note would be created with a
compounding intrest rate very muck the same as a conventional
mortgage. the 10% down would go to the note investor to show a
comitment to the note also very much like a conventional mortgage. The
payment would be based on the remaining $36k.

Rich Carreiro  wrote in message news:...
> northeast@stny.rr.com (John Keegan) writes:
> 
> > Would a $40,000 note discounted to $36,000 be attractive to an
> > investor? Making 10% for 15 yrs.? Keeping in mind that there is a
> > co-signer on the note!
> 
> Your wording is ambiguous.  Are you talking about a $40,000 note with
> a 10% coupon (i.e. pays $4,000 in interest per year) which is then
> sold for $36,000 (so the investor gets $4,000 per year in interest,
> plus a gain of $4,000 on the note)?  Or are you talking about the
> investor giving you $36,000 today and you giving him $40,000 in
> fifteen years but no annual interest payments, so that all the
> invester gets is the $4,000 gain on the note?
> 
> If you're talking about the latter, that works out to a return of
> 0.704% per year, so obviously no sane person would touch it.