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Business, 17.06.2020 22:57 aurora32

Looking for potential trust deed investments in the classified ads you stumble upon the following listing on Craigslist: $100,000 2nd Trust Deed for Sale
Original Loan Amount: $100,000 Original Interest Rate: 10%
Original Loan Term: 10 years
Monthly Payment: $900.00
Number of payments remaining: 52
Existing 1st Trust Deed = $350,000
Market Value of Property = $700,000
A) What is the LTV of the 2nd Trust Deed
B) If you were interested in purchasing this trust deed and required a yield for yourself of 20%... how much would you offer the seller for the note? (hint: you need to find the original balloon payment first)C) Assume the seller accepts your offer… what rate of return would you receive if the loan was prepaid by the borrower 10 months after you purchased it.

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