Posted by Paul NM on February 07, 2001 at 13:01:47:
When I put the numbers into my calculator I get a 13.85% return on the investment if it is held for the full 15 years. The yield would be significantly higher if it is paid off early. That seems significantly better than a bank. I might also suggest that if he needs cash at some point, he can probably borrow against the payment stream from a well seasoned note.
Paul NM
I don’t understand why this is a good deal - Posted by John Knowles
Posted by John Knowles on February 07, 2001 at 03:13:58:
In his article “How a home seller’s nightmare became a discount mortgage buyer’s dream”, Leonard Stitt pays $38,795 for $92,160 (paid @ $512.00 per month for 15 years). Just off the top of my head, this seems like a poor exchange - I should think putting $38,795 in the bank for 15 years would yield far better rewards, plus the money would be available if needed.
Am I missing something?