Agents Online Real Estate Forums, Discussion, Realtors Marketing Tips

Follow AgentsOnline on Twitter

Click Here to display our logo on your site and link to us!
AgentsOnline Real Estate Discussion Forums Logo

Sponsored Links
Good Ideas
Inspection Central



How To Advertise Here

Sponsors
Facebook
Sponsored Links
Topic Options
Rate This Topic
#67197 - 08/13/05 02:15 PM Zero coupon bonds to buy RE
drobin Offline
Member

Registered: 06/03/05
Posts: 59
Loc: Boston
Has anyone ever used this approach or any bonds at all?

Top
Sponsor
#67198 - 08/13/05 03:33 PM Re: Zero coupon bonds to buy RE
Jim Lee Offline
Major Contributor

Registered: 07/01/99
Posts: 4785
Loc: Knoxville, Tennessee, Knox Cou...
Since zero coupon bonds typically sell at a huge discount from the face value how would that be used in buying real estate???
_________________________
Jim Lee, REALTORŪ, CRS, ABR, e-PRO
[url=www.KnoxvilleHomeCenter.com]www.KnoxvilleHomeCenter.com[/url]
[url=www.KnoxvilleTennesseeRealEstateBlog.com]www.KnoxvilleTennesseeRealEstateBlog.com[/url]
I am not an attorney & I am not giving you any legal advice.

Top
#67199 - 08/13/05 06:11 PM Re: Zero coupon bonds to buy RE
drobin Offline
Member

Registered: 06/03/05
Posts: 59
Loc: Boston
A book that I've read mentioned something to the effect of offering the zero bond to a seller as part of a down payment or as collateral aginst the seller carrying holding financing.

Top
#67200 - 08/14/05 04:58 PM Re: Zero coupon bonds to buy RE
Jim Lee Offline
Major Contributor

Registered: 07/01/99
Posts: 4785
Loc: Knoxville, Tennessee, Knox Cou...
Quote:
Originally posted by drobin:
A book that I've read mentioned something to the effect of offering the zero bond to a seller as part of a down payment or as collateral aginst the seller carrying holding financing.
Once again, zero coupon bonds (commonly called "zeros) sell at a huge discount from their face value because interest in only payable when you cash in the bond after it matures.

For instance a $1,000 face value zero that yields 6.15% at maturity in 20 years sells for around 290 bucks right now and is worth about 290 until the 20 years passes.

If you're selling a house for say $100,000 you need to ask yourself how excited you would be if someone offered you a handful of zeros worth $100,000 20 years from now but about 29K right now???

No sale from me.
_________________________
Jim Lee, REALTORŪ, CRS, ABR, e-PRO
[url=www.KnoxvilleHomeCenter.com]www.KnoxvilleHomeCenter.com[/url]
[url=www.KnoxvilleTennesseeRealEstateBlog.com]www.KnoxvilleTennesseeRealEstateBlog.com[/url]
I am not an attorney & I am not giving you any legal advice.

Top
#67201 - 08/17/05 10:33 AM Re: Zero coupon bonds to buy RE
drobin Offline
Member

Registered: 06/03/05
Posts: 59
Loc: Boston
James, thanks for the response. I have the basic understanding of the "zero" instrument. Would the possibility exsist for someone to accept a zero five years from maturity. Quite frankly I would not wait twenty years myself.

Top
#67202 - 08/17/05 10:36 AM Re: Zero coupon bonds to buy RE
drobin Offline
Member

Registered: 06/03/05
Posts: 59
Loc: Boston
I have have recently learned that an associate of mine actually purchased some zeros years ago to partially fund his grandchilds college tuition.

Top




Residential Warranty Services


Google Custom Forum Search

This Google Custom search may do a better job of searching the forums for some keywords than the old forum search does. The results do not include threads from the Asset Managers Forum however. To search that forum you will need to be actually in the Asset Managers Forum and you will need to use the old forum search below.
Search

Good Ideas!


Priority Mold Testing




How To Advertise Here

Newest Members
Linn Santana, ainla, FastNewsletters, eileen31948, MrBrad595
28253 Registered Users
Who's Online
1 registered (Granta Omega), 196 Guests and 4 Spiders online.
Key: Admin, Global Mod, Mod
Shout Box

Top Posters (30 Days)
Vermont 39
David Hunter 35
SilverLakeBlog 32
Granta Omega 23
Daniel1234 19
FENIX 18
sualk54 15
miracle 13
gitmonee 11
Tex 9
barb43 9
RonnieEmz 9
Trouble 8
erickhon 7
FunGuy 7
(Views)Popular Topics
I MAKE 100 COLD CALLS EVERY DAY & LOVE IT! 17735736
No new orders today 11334502
Stupid MLS comments. 2564595
What do you know about Froy Candelario, top agent in USA 892685
Stupid QC comments and BPO requirements. 843185
New HUD Listing Brokers---Any Update? 799933
Is there religious content in Buffini class? 630883
Let's talk about our cars 510876
Pay it Forward - BPO/REO Tips & Tricks I & II 485138
Most common items found at an REO 464490
EML 459225
Name that Flick. Great movie Lines. 421716
REOTRANS 339562
asset val seminar in colorado 320870
Evalonline 300066
Land America 285048
Mainstreet 261856
Main Street 239093
HOMONYMS - There, Their, and They're 231984
assist 2 sell or 1 percent realty? 229713
Featured Member
Registered: 04/16/16
Posts: 2

How To Advertise Here


This site presented by RNC Internet Services