Re: Buy my own note at a discount - Posted by John Corey
Posted by John Corey on March 11, 2006 at 02:05:42:
The note holder might be interested in offering you a discount.
Look at it this way. You have the cash but know that you can invest it in other opportunities. Potentially the other opportunities pay a higher return than you would effectively earn if you pay off the debt. Assuming that the debt it not due, logic would say that you would continue to make monthly payments and use the cash some where else. That is how you should present the situation to the note owner.
Now, the owner of the note might have reasons that the cash now is worth more than receiving the cash over time. Just the opposite could also be true. Hence you will not know until you ask. Just asking will put the message in the mind of the note holder that the cash is sitting there. Then if something changes in the future the note holder may approach you with a discount if you can pay them off.