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Old 02-15-2011, 09:42 PM   #21
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No improvements, the contract states that he has to pay it off before any construction starts; I didn't want any lien issues in the event he defaulted.
Could this be why he's seeking different financing? He's got a good rate now, I don't know why else he'd be willing to pay the costs.

If you really want to keep the payments coming to you, maybe offer to allow construction if you can see and approve the contract/any financing. Improvements to the land, if done right, could enhance your position (make him more reluctant to walk away). Or, you'd be happy if he did walk away and leave you a nice new drive, shed, well, house, etc with the construction loan secured by his primary residence.
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Old 02-15-2011, 09:48 PM   #22
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Westernskies...just some thoughts.
By the time he comes to you...if he comes .... he may already have refinance money arranged and he may have signed on the dotted line with them. Waiting to match him at that point could be a moot point.

Is it possible he could also have an avenue for private financing where closing costs may not be a factor for him..which sweetens his side of the equation? Or are you fairly positive this may be with a bank?

Definitely research bank refinances for raw land to see what he is seeing. Then decide if you want to approach him. You may find he can't do much better than what he is paying currently.
I agree, but instead of cutting the return by ~$400-$500/month I'm thinking I'll just wait him out, who knows, maybe the the next scheduled payment is already going to retire the note? ...Meanwhile, I'm looking at options for investing the cash; with the extension of the tax cuts it just might be good to get this over with now with capital gains at 15% and move on, like samclem and Purron suggested.
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Old 02-16-2011, 08:15 AM   #23
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Agree with this too! 15% cap gains definitely may be going away.! Either way it is a good problem to have. I have 2 CD's paying 5% coming due in the next 2 years and will have to do the same. We will see where rates are at that time. Along with the suggestion of others take a look at MAV and EGX. MAV has a 8.7% yield and EGX has a 10.7% yield. As always...."future performance is not guaranteed...etc...etc...etc.."
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Old 02-16-2011, 06:17 PM   #24
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Well, looks like this is further along than I thought. Got a call this AM from the bank holding the escrow account letting me know that they had been contacted for a payoff figure. (And wanting to know if I would be waiving the prepayment penalty.).. uuuuuhhhhh, no.
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Old 02-16-2011, 06:35 PM   #25
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Well, looks like this is further along than I thought. Got a call this AM from the bank holding the escrow account letting me know that they had been contacted for a payoff figure. (And wanting to know if I would be waiving the prepayment penalty.).. uuuuuhhhhh, no.
I'm thinking it's a local community bank desperate for loans and looking to beat your rate.

Don't look at it as a problem...it's a new investment opportunity! And in a market looking better and better these days.

Hope it works out well for ya dude.
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Old 02-16-2011, 07:01 PM   #26
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That WAS fast. Good luck and hope it works out well.
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Old 02-16-2011, 07:16 PM   #27
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Wow. I wonder if it is a construction loan.
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Old 02-16-2011, 09:35 PM   #28
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Sounds like you originally financed the buyer only because he wasn't able to get decent financing. What would you have done with the proceeds if the buyer originally had been able to get financing? Just do that now .
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Old 02-16-2011, 10:53 PM   #29
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I'm thinking it's a local community bank desperate for loans and looking to beat your rate.

Don't look at it as a problem...it's a new investment opportunity! And in a market looking better and better these days.

Hope it works out well for ya dude.
Give the woman a cigar! From what I was able to find by poking around today, it is a local community bank, and they're doing some sort of wraparound refi on his house and some rental properties; he's apparently convinced them to roll this land loan into the package.

Looks like I'll be calling Vanguard next week.
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Old 02-17-2011, 06:19 PM   #30
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I thought you had everything in FFIV? You could buy more; it's way cheaper now.
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Old 02-17-2011, 07:38 PM   #31
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I thought you had everything in FFIV? You could buy more; it's way cheaper now.
Nope, no FFIV holdings; you must have me confused with one of your other favorite forum members.
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Old 02-17-2011, 07:55 PM   #32
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Your posts are always memorable, Westernskies.

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Damn, now what am I going to do with my 100% asset allocation in FFIV?
No one has mentioned FFIV
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Old 02-17-2011, 09:15 PM   #33
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Your posts are always memorable, Westernskies.



No one has mentioned FFIV

Sorry, that was one hot stock tip I missed getting in on, though the OP's recommendation on that thread was pretty compelling... I must have been distracted by NW-bound's mention of beaver cheese futures and just thought I'd executed that 100% FFIV order... Thanks for reminding me...
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Old 02-17-2011, 09:22 PM   #34
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UPDATE-

Talked to my friendly banker this AM, looks like everything is in order, and the buyer is closing on their new loan next week; have already scheduled the wire transfer. Looks like I'm going to have to spend more time in "FIRE and Money" and less time on "Other Topics".
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Old 02-17-2011, 10:35 PM   #35
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Congrats Western. The goal is always cash. You shot on goal, and scored.

Ha
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Old 02-17-2011, 10:43 PM   #36
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Cash is king. How about some laddered CDs and a diversified portfolio of high credit quality bonds?

Won't replicate that juicy 6.5% you were getting though.
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Old 02-17-2011, 10:49 PM   #37
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Looks like I'm going to have to spend more time in "FIRE and Money" and less time on "Other Topics".
Mmmm....hmmm....
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Old 02-18-2011, 06:59 AM   #38
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UPDATE-

Talked to my friendly banker this AM, looks like everything is in order, and the buyer is closing on their new loan next week; have already scheduled the wire transfer. Looks like I'm going to have to spend more time in "FIRE and Money" and less time on "Other Topics".
Just don't plan any trips to Vegas in the near future....
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Old 02-18-2011, 08:27 PM   #39
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Off topic a bit but since I put the information in this thread..felt I should post back to the thread. I posted about 2 stocks/funds with good yields and received a question about one of them. The one I received the question about is EXG. Yahoo doesn't display the dividend yield. I have no idea why. The stock is Eaton Vance Tax Managed Global Equity Fund and the current yield is 10.7%. I've copied below the information from the Morgan Stanley website. Scroll all the way down to see the yield.
Hope this helps anyone else who has a question...as Yahoo...isn't displaying the yield...and again I don't know why.

Enter Symbol(s) or CUSIP(s):

symbol lookup
Get Quote
ET VAN TAX MG GL DIV EQ INC (NYSE: EXG)
As of Feb-18-11 4:02p ET (Delayed)
Symbol (USD) Last Change [%] Volume
EXG 10.6100 (N) +0.0500 [+0.47%] 897,509
Market Summary
As of Feb-18-11 5:16p ET (Real-Time)
Index Last Change [%]
.DJIA 12,391.25 +73.11 [+0.59%]
NYA 8,507.90 +10.49 [+0.12%]
.NCOMP 2,833.95 +2.37 [+0.08%]
.SPX 1,343.01 +2.58 [+0.19%]
Dow Jones | NYSE | NASDAQ | S&P 500

Quote Data
Block Trade Count 2 Primary Exchange NYSE
Bid [Bid Size] - Ask [Ask Size] -
Open 10.6000 Previous Close 10.5600
Day Range 10.5500 - 10.6200 52 Week Range 4.3500 - 12.5500
Last Trade Size 1,800.00 Ex-Dividend Date Feb-16-11

Key Ratios and Dividend Data
Earnings/Share 0.03 P/E Ratio 359.17 Beta 1.05
Dividend/Share 1.137 Dividend Yield 10.72% Market Capitalization 3.24B
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Old 02-18-2011, 08:58 PM   #40
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Morningstar shows the dividend yield. I found the "Morningstar's Take" section to be interesting:
Quote:
This is one of eight covered call funds offered by Eaton Vance. For the most part, the funds have performed average or only slightly better than average compared with the covered call peer group since each fund's inception. The overall management of these funds has not produced great results. In fact, each of these funds has used return of capital routinely as part of its distribution, and it is often destructive to shareholder value. A recent round of significant distribution cuts (26% for this fund) shows that the fund's previous distribution policy was unsustainable. Investors should be wary.
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