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

Realtor CommunityOne of the most popular online real estate communities consistently since 1998!


Virtual Homestaging at PadStyler.com


Sponsored Links
Home Inspectors
Inspection Central

How To Advertise Here
How To Advertise Here

Advertisements
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
Advertisements
#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

Advertisements

Newest Members
californiawomann, Unique Mallorca, prokev01, thansen85, Thang Nguyen
28764 Registered Users
Who's Online
4 registered (Z06Fanatic, copenwbpos, 2 invisible), 230 Guests and 5 Spiders online.
Key: Admin, Global Mod, Mod
Shout Box

Top Posters (30 Days)
Vermont 46
David Hunter 40
Dat Moi 36
Thang Nguyen 34
Z06Fanatic 34
WestMIMedia 29
Daniel1234 27
Brian Paul 16
estatereal 13
Sailesh 12
Ocalarealtor 12
Trouble 12
goasya 12
Lucky Leonardo 9
VABroker 8
(Views)Popular Topics
I MAKE 100 COLD CALLS EVERY DAY & LOVE IT! 21375417
No new orders today 11932276
Stupid MLS comments. 2790294
What do you know about Froy Candelario, top agent in USA 978196
Stupid QC comments and BPO requirements. 914537
New HUD Listing Brokers---Any Update? 878462
Is there religious content in Buffini class? 690700
Let's talk about our cars 556193
Pay it Forward - BPO/REO Tips & Tricks I & II 513911
Most common items found at an REO 498120
Name that Flick. Great movie Lines. 478282
EML 459229
REOTRANS 367558
asset val seminar in colorado 345507
Evalonline 300066
Main Street 298048
Land America 285048
assist 2 sell or 1 percent realty? 265217
Mainstreet 261856
HOMONYMS - There, Their, and They're 253105
Featured Member
Registered: 09/22/16
Posts: 1

How To Advertise Here


This site presented by RNC Internet Services