Total Payments Isn’t Note Value! - Posted by David Butler
Posted by David Butler on October 27, 2003 at 14:07:13:
Hello Clint,
In addition to the helpful input Rich provided here, including pointing out that you have offered some conflicting terminology that makes your situation a bit unclear - your concept of note value is off target! Be sure you understand that the $25,200.00 figure you gave merely represents the total of payments to be received over the next 84 months, at $300 per month.
That number by itself has little to do with the actual “value” of the note as a financial investment - though it generally would have some bearing on “alternative investment analysis” of a given note deal, as oppossed to another investment available to the same buyer at the same time.
Also, you state that For Sale is “Mobile and Existing Note”??? That would be be two unrelated items being offered for sale??? Can you clarify what you mean by that, along with the other questions Rich had? That will help you determine what you’ve got here, and whether or not it may be a “good” investment or not. Good hunting…