(the lender will have to pay for it in advance).Sometimes there is language in the note and security instrument that allows a lender to not only collect on any and all advances (such as taxes, insurance and legal fees) but also charge interest.

Companies, especially issuers of debt instruments (bonds), in some cases may include a 'call provision' in the contract with the investor which allows the company issuing the debt instrument to call the debt (pay off the investors) prior to the stated maturity of the debt.

I think the bulk of lease/options are unsuitable for the folks that purchase them for precisely the reasons documented in this thread.

This is similar to your plan to invest it in higher return instruments.

My principle instrument was french horn.Sounds like you're well versed with your analysis.

The reason a Purchase Money Note, as a debt instrument is preferable is because of the possibility of a seller-come-creditor having some ability to have recourse on the borrower, where it it is argued that obligation is a promise to pay by the purchaser.

NPL's trade at the discounts they trade at due to the lack of cash flow and the additional capital costs to enforce the remedies provided in the note and security instrument.

Great response from Jon.If you borrow the funds needed from someone you know, you can record a second lien againstbthebpropertybto provide your lender a security instrument.

They all have varying criteria for the note and security instrument as well as the geography and other parameters.

The market is turning to a sellers market and the time will come soon that there may no longer be any great deals in the market - at that point I would still rather invest in securities instruments (mutual funds, REITs, index funds) or another investment vehicle.