EXAMPLE NO. 3
This involves the
sale of a lake front lot with electricity, telephone, and
year-around road, that sold for $25,000 with $5,000 down.
The balance of the purchase price is a Seller Financed deed
of trust for $20,000, payable at $264.30 per month.
Several options available to the Seller are:
Option 3A: Sell 65 payments for $10,000 cash now.
With the $5,000 down payment, that's $15,000 cash now. In
addition, when the note is reassigned to the Seller in 65
months, it will have 55 payments remaining and will have an
approximate balance of $11,620. Thus the combination of cash
now future value total $26,620.
Option 3B: Sell for $19,000, payable as $9,500 now
and an additional $9,500 in 60 months. With the down payment
of $5,000, that's $14,500 cash now, plus $9,500 in 60
months, for a total of $24,000.
Option 3C: Sell the entire note for $14,100 cash now.
With the $5,000 down payment, that's $19,100 cash
NO. 1 EXAMPLE
NO. 2 EXAMPLE