15 Year Payment Plan

[talk]

I've Been Looking @ Properties With 15 Year Payment Plans. Don't Really Like The Plans As To Flip On The New Purchaser Must Continue The Plan As Of The Date They Take Ownership,or The Plan Must Be Paid Off In Full If They Do Not Want A Payment Plan.This Means That 15years Interest Must Be Paid Even To Settle The Plan After,say Only 1 Year.This Means That You Must Flip At,at Least 40% Profit To Break Even.

Does This All Sound Correct,or Is Someone Giving Me Incorrect Info,or I Am Just Dopey.

[richie83]

Originally Posted by talk

I've Been Looking @ Properties With 15 Year Payment Plans. Don't Really Like The Plans As To Flip On The New Purchaser Must Continue The Plan As Of The Date They Take Ownership,or The Plan Must Be Paid Off In Full If They Do Not Want A Payment Plan.This Means That 15years Interest Must Be Paid Even To Settle The Plan After,say Only 1 Year.This Means That You Must Flip At,at Least 40% Profit To Break Even.

Does This All Sound Correct,or Is Someone Giving Me Incorrect Info,or I Am Just Dopey.

you certainly do NOT have to pay 15 yrs interest if you settle earlier, you just pay the outstanding balance+interest at the time you sell. i assume this is 15yr plan from select property...if so, they give you a detailed payment schedule which outlines exactly how much you have left to pay at each installment and what the settlement amount would be at any given point.

[talk]

Richie,this Looks Correct,but Say You Wish To Settle After 1 Year,you Have To Pay 14 Years Interest.what Investor Wants To Do This.they Are Being Forched To Take On The Remainder Of The Payment Plan.this Leaves It Very Hard For An Investor To Flip Any Property Bought From Select Which Is Under A Payment Plan As The Profit Is Taken Away By Interest.