Investors United School of Real Estate Investing
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

Good Ideas
Free Marketing Kit



How To Advertise Here

Sponsors
More Good Ideas!
Get Listed In The Realtor Directory

Internet Marketing Tips for Realtors




Build your brand on a Real Estate Site


Facebook
Sponsors
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?
_________________________
Charleston Real Estate

Top
#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.
_________________________
Charleston Real Estate

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.
_________________________
Charleston Real Estate

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.
_________________________
Charleston Real Estate

Top






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

Sponsors

Newest Members
AlexK, LIStateOFmind, Anshuman, Bent Philipson, hollywoodtoday
26149 Registered Users
Who's Online
3 registered (sualk54, RAH, Sassy411), 250 Guests and 3 Spiders online.
Key: Admin, Global Mod, Mod
Shout Box

Top Posters (30 Days)
David Hunter 54
RAH 40
lucky 40
BrianMI 36
Vermont 32
75Corvette 20
gitmonee 14
poindexter 13
Bigtoe 11
agentjunior 10
fdegree 10
12 step 4 BPOs? 9
synergy 9
sualk54 9
RonnieEmz 9
(Views)Popular Topics
I MAKE 100 COLD CALLS EVERY DAY & LOVE IT! 10856795
No new orders today 9948983
Stupid MLS comments. 2053913
What do you know about Froy Candelario, top agent in USA 681403
Stupid QC comments and BPO requirements. 647576
New HUD Listing Brokers---Any Update? 614040
Is there religious content in Buffini class? 487237
EML 459215
Pay it Forward - BPO/REO Tips & Tricks I & II 387542
Let's talk about our cars 384538
Most common items found at an REO 325712
Evalonline 300063
Land America 285039
REOTRANS 269587
Mainstreet 261846
Name that Flick. Great movie Lines. 253569
asset val seminar in colorado 247583
FARVV 177361
HOMONYMS - There, Their, and They're 161364
assist 2 sell or 1 percent realty? 149046
Featured Member
Registered: 06/21/13
Posts: 8

How To Advertise Here


This site presented by RNC Internet Services