Posted by brad on July 02, 2002 at 10:59:14:
good idea to me but you might want to add in a prepayment penalty so you don’t loose money if someone pays off early. ie lower interest higher sale price locks in a certain amount of profit and annother part of maby profit ex buy 1000 sell 2000 interest 0 term 12, you just made 1000 off of your investment right. (forgive the math no calculator right now) same home buy 1000 sell 1500 interest 10% term 12. in example one you make a grand and get your money back in six months. in example two you make 582 dollers and you get your money back in the midle of the 7th month. in order to make 1000 dollers like in the first example you have to extend the payments. my point being that early payoff will kill your profit and on top of that if you decide to jack up the interest to compensate for this you will loose sales to people who actually would have paid your price but were scared off by the high interest. people are trained to feel like if they are paying more interest that they are being cheated. in reality they are not paying anything different. besides what is the difference how much you have to pay in taxes? first you have to earn it before you have to pay right. i said earn not recieve. on top of that Doc has given alot of info lately on how to get out of taxes too bad for uncle sugar.