2nds..
Hi all, I wanted to know is there a percentage you go by when purchasing 2nds.
for example: 1st. $200,000
2nd, $60,000
Would it be worth paying for the 2nd note?
(this not a real deal)
thanks...
Your post is a bit confusing. I see no percentage. Do you mean the ratio (expressed as a percentage) of the value of the second to that of the first? Do you mean the yield on the second? You might try asking your question again.
Im sorry my question wasnt clear but i guess i got confuse myself.. I guess what i was trying to say is, is there a limit you should pay for 2nds?
thanks....
Are you asking what should you pay for a note?
If so, what you are asking depends on your financial strength, threshold of risk and the terms concerning the note. These include:
Value of the securing property
terms of the 1st
terms of the 2nd
payment record of the payor
other liens and encumbrances of securing property.
It will also depend on the needs of the note seller. As a suggestion, you might want to study some material on the "time value of money". This will help you understand notes a little better. Also, I wrote an article entitled "What is the value of your note". This may be of some help with the time value of money concept.
???? what?