Lynda Durham February 2, 2020 Promissory Note
Background information Note scams and strategies are on the upswing. They've taken of (many seniors) for of dollars. The main reasons investors are: (1) a high rate of interest or return; (two ) a (3) a simple investing concept-"we promise to pay for you". hard for the ordinary investor to understanding a large firm sufficiency to become comfortable buying its stock; is a much task then understanding the simple --"we promise to cover you"-"your money will be safe"-"we guaranty it". Unlike investments today, promissory notes seem to a simple and concept together with high returns.
Balloon Payments: of repayment schedule borrowers to or interest-only obligations; followed closely by one large (balloon) payment by the close of the bank loan. Although interest-only obligations can be appealing, the drawback is that the principal sum of the note never reduces. The balloon payment consists of the entire amount of , any interest staying on the loan.
Investors should consider the following before buying a promissory note: • If enrolled , they may be the notes without a license or without their firms' approval. • why wants to sell for you: Bona fide promissory notes are generally sold to investors that are complex. The fact that promissory notes are now being sold to investors is a hazard sign.
Payments with Interest: this sort of repayment schedule is described as amortized also allows Borrowers to a predetermined amount month for a particular . repayment is common when money for a automobile, home or small business loan.