Posted by David Alexander on March 07, 2000 at 17:53:23:
Doesnt matter as long as your happy with the security and you understand it. You just need to know what kind of yiled your after and then either buy or create some notes.
David Alexander
Notes for leverage - Posted by Jonathan Rexford
Posted by Jonathan Rexford on March 07, 2000 at 15:23:00:
Its toy time for me. I was wondering if anyone out their in Note Land has ever traded or used notes to purchase a automobile. I am looking to buy a new S.U.V. I have 10K to put into a SUV but the onw I am looking at costs 39K. I was wondering about buying some notes to offset the cost a little or am I dreaming. Just a thought!
Jonathan Rexford
Rexford Incorporated
Builder/Mortgage Broker
The key is the motivated seller - Posted by John Behle
Posted by John Behle on March 08, 2000 at 13:09:23:
The best bet on doing an “overtrading” type deal is to find a motivated seller. That’s why we do it with bank REO’s and repos.
It’s not likely the dealer you want to buy the motor home from is motivated enough to take notes, but try. Now for a greater chance of success find a dealer or bank the has repossessed one. With the institution in particular, you have a good possibility.
Another option for just a pure trade would be a private seller with a motorhome. You might find one that would take some good paper.
Re: Notes for leverage - Posted by David Alexander
Posted by David Alexander on March 07, 2000 at 17:20:06:
Or How about just buy some cash flow at a better yield than you are financing the notes at.
In other words get a loan for the car say at 8%, and buy some notes at a yield of anywhere from 15-25%.
Let the cashflow from the notes pay for the car loan.
The car will pay off faster and then you’ll still have more cashflow to reinvest.
David Alexander
Re: Notes for leverage - Posted by Terry Vaughan
Posted by Terry Vaughan on March 07, 2000 at 16:06:26:
Jonathan:
The concept you refer to is called “overtrading”. See the great disscussion below on that very subject.
Also, read:
http://www.creonline.com/ss-9.htm
then substitute “auto” for “property”.
Re: Notes for leverage - Posted by Jonathan Rexford
Posted by Jonathan Rexford on March 07, 2000 at 17:38:59:
Okay I get the concept. But where could I find the notes to buy say 10K for 30K worth of Income for the Gas Hog that I want to buy, are Mobile Home Notes the answer?