Posted by Max W. on January 03, 1999 at 10:30:38:
Yes, I consider the discount a cost of doing business. This expense is part of my calculations well in advance.
When I refered to control, I was speaking about the R.E. transaction more so than the paper. I like to do all of the legwork / pre-qualification dealing with the creative financing to keep the number of surprises (ie: loan turn downs, slow lenders) to a minimum.
You can make a good deal better by maintaining an intrest in notes you sell. Selling partials on simultaneous deals are a great way to set up future cashflow for your portfolio AND make money now. If the property pays off early (7 years is the avg. for owner financed notes) you still get some cash! (as determined by a partial amort. schedule)