Note Creation and Payment Options (long) - Posted by tb
Posted by tb on January 26, 2000 at 18:05:33:
Thanks to everyone who is taking the time to read and respond to this post. Your advice is always appreciated.
I`ll be creating notes on FSBO unimproved parcels and holding the notes for the cash flow. For reference, here is the structure of the notes in question.
Parcel Price : $2250.00
Down Payment : $250.00
Owner Financed: $2000.00 at 10%
Here`s the question.
It seems that by being flexible and giving buyers the option of different payment schedules, we can create
many more sales than on one specific monthly payment plan.
$2000.00 at 10%
24 Months @ $92.28/Month
36 Months @ $64.53/Month
48 Months @ $50.72/Month
60 Months @ $42.49/Month
Besides giving the buyer the ability to decide his/her own payment schedule, thereby increasing overall sales, the profit made on the 10% over the life of say the 60 Month note would, of course, be greater.
Does anyone have any experience with this type of note creating and creative seller financing (dumb question, I know)?
Looking for any and all perspectives on this type of deal. All ideas, advice and comments greatly appreciated.
Thanks a Million!