CFZ E-Wiggle Workspace Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : CFZ E-Wiggle Workspace

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Perspective who wrote (8694)	9/24/2008 2:18:25 PM
From: Galirayo	Read Replies (1) of 41419

Beats the heck outa me .. I'm just trying to look at this entire situation as best I can from a different view. Back in 1980ish I learned that you could invest in Discounted Mortgage Paper. You may be well versed on the concept / vehicle .. but in a nutshell [if I can explain it properly] you calc the Gross Cash Flow thru the Maturity Date and discount it by projected inflation to arrive at your desired Annual Yield and desired purch price. But .. and However .. and as a Major No .. No .. you don't use this strategy with 2nds. You use it with only the 1st .. Creating a 2nd and selling it is a Good Strategy too if you can stick a balloon on the end of a 5 or 10 year note to save some time value on the dollar .... But most Saavy RE Investors don't buy 2nds .. or 3rds for that matter .. They only Buy 1sts only 1sts .. and only if you control a bunch of equity in the case of a default ... so the Question is .. Why are they even talking about our taxpayer $$ going to buy Very High Risk 2nd Mortgage Paper ?? The Creators or Holders should just have to Eat all of that Subordinated Stuff if it's bad. Unless of course it was just "" Such a Deal !! "" ;) Nevermind .. that Bill Gross dude is on CNBC now he may explain it better. When in Doubt .. Change the Terms .. Change the Price. This needs to be like a Biz Transaction for the Gvmt. Not a Bail Out. They could call it G-Bay .. lol

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next