Understanding Amoritization Schedules When Buying Performing Notes
Manage episode 414313048 series 3039481
When you look at buying performing notes, it's not only important to look at the potential cash flow of the deal but also to understand the amortization calendar and how long you can hold on to that note when using investors' funds. The later the term of the mortgage often means the sooner you need to be out of the deal.
Scott breaks down how investors can get in trouble if they don't run the numbers to identify when they need to get out of a performing note when the principal balance gets closer to the funding amount of the deal. He'll show you why it's much better to be buying that note on the front half of the mortgage term instead of the last half and why paying 80% for performing paper is not always a good idea.
Watch the original video breakdown HERE!
Love the show? Subscribe, rate, review, and share!
Join the Note Closers Show community today:
606 قسمت