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
Inspection Central




How To Advertise Here

Sponsors
More Good Ideas!
Content Marketing For Realtors


Branded Content Marketing 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?

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
Stewart Property, ListFLHomes, F Brown, Lauradena, RealtorHelper
27262 Registered Users
Who's Online
4 registered (bluebird, BrianMI, ibsellin, 1 invisible), 87 Guests and 4 Spiders online.
Key: Admin, Global Mod, Mod
Shout Box

Top Posters (30 Days)
David Hunter 50
New2ReSales 46
Vermont 35
RealtorWebsite 35
VancouveRealtor 35
MOMO 31
ibsellin 21
barb43 20
Tex 17
Broker John 13
VABroker 12
Agent Fez 11
lucky 9
LoveTahoe 9
lemonzest 8
(Views)Popular Topics
I MAKE 100 COLD CALLS EVERY DAY & LOVE IT! 14763620
No new orders today 10760188
Stupid MLS comments. 2342972
What do you know about Froy Candelario, top agent in USA 779246
Stupid QC comments and BPO requirements. 741574
New HUD Listing Brokers---Any Update? 691663
Is there religious content in Buffini class? 544806
EML 459220
Let's talk about our cars 442257
Pay it Forward - BPO/REO Tips & Tricks I & II 433167
Most common items found at an REO 398806
Name that Flick. Great movie Lines. 324468
Evalonline 300065
REOTRANS 299401
Land America 285044
asset val seminar in colorado 277793
Mainstreet 261851
HOMONYMS - There, Their, and They're 190658
FARVV 177361
assist 2 sell or 1 percent realty? 174604
Featured Member
Registered: 04/12/08
Posts: 6686

How To Advertise Here


This site presented by RNC Internet Services