Posted by Philip on August 04, 2003 at 07:08:35:
True. And I will have to keep that in mind and address it, thanks for the tip.
I will be able to keep the entire cash flow from the most recent sale, and that should secure any business with the partials I have sold…unless I get cashed out again…durn it!
Thanks,
Philip
prospect of early payoff,very similar to cash - Posted by Philip
Posted by Philip on August 01, 2003 at 17:48:41:
The buyer of my second Lonnie home just left an email saying he was paying me off in August or September.
IF…and again I say IF that is true the whole thing would look like this:
3000.00 invested (Maximum)
1000.00 down from buyer
208.72 in 4 months interest from buyer
4472.00 in payoff from buyer
= 5,680.72 total from buyer in 4 months.
My income stream dissappears and I am still responsible to investors…but what would the yeild be on that?
(It’s really more like a s-l-o-w cash deal, huh?)
Philip
Re: prospect of early payoff,very similar to cash - Posted by Tim
Posted by Tim on August 04, 2003 at 06:43:22:
I don’t know if I am reading this right, but are you saying that the note will continue even though you have sold the mobile? You might consider inserting a clause in your next note stating no prepayment penalty, or if your investors don’t like that idea set a prepayment penalty that you both can live with. A private lender I know that does long term notes on houses set a 3% prepayment penalty the first year, 2% the next, 1% the third & none from then on.
Re: prospect of early payoff,very similar to cash - Posted by Philip
Posted by Philip on August 04, 2003 at 06:52:41:
The partial bought by an investor will continue, even though the cash flow from the sale of the home will not.
I have re-invested part of the payoff money in another mobile to sell on a note so I can continue to cover my investor on the payed off note.
I just wondered what the “official” yeild would be on the scenario I described…but it is really almost a cash deal, since he only payed 4 month on the note before he cashes me out.
Sorry I am clear as mud, but it is all a good thing, I think.
Philip
Re: prospect of early payoff,very similar to cash - Posted by Tim
Posted by Tim on August 04, 2003 at 07:05:12:
As long as you can reinvest the payoff money elsewhere you are in good shape. I would just be concerned that I was locked in to paying interest on money I wasn’t getting any benefit from.