There is the other side to just compounding a good return after good return after good return versus trying to knock it out of the park every time and having one great return followed by a not so great one, followed by a loss...

People graduate high school and don't know the most basic things that will affect them for the rest of their lives, like how compound interest works.But I don't think anything has really changed in America. 

However, people who made bad note investors don't get bailed out by capital appreciation; their mistakes are compounded by their lack of control over the property, by a court system that assumes the note holder is a bad guy and the borrower a victim; by foreclosure laws requiring a note holder to jump through loops and pay huge legal fees to repossess a property for non payment, by not obtaining title insurance and discovering that their are superior liens on the property, by note sellers who provided incomplete or misleading information, etc.  

Stocks have done great this year, but over the long term, the DJI average is around 7-10% compounded rate of return.

This is a compound annual growth rate of 27%.Real estate is about the long view.  

The compound benefits of tax-deferral generally far out weigh paying the taxes and allow investors to significantly build their net worth (wealth).

You aren't going to retire from $100k but it can cashflow and compound slowly over time.

We are just wrapping up selling a property where the CoC was 6.3% and the net annualized return on the actual sale (forced equity from a remodel / reposition + appreciation) was 37% compounded.

Most of us need income today so that with the incredible power of time, compound interest and money, we will have security.

Depending on compounding type, you can estimate interest rate by dividing the total interest paid during the first year by the loan amount.So, if you're borrowing $152K ($162K-10K down), and paying $12K in interest (12 months x ($1100 - $100)) then:interest rate = $12K / $152K = 7.9%Obviously you could get a better rate at a bank, but there may be some advantages of seller financing that would make the higher rate worth it depending on your circumstances.