Too many people have used IO loans to buy more house than they can afford and so when they get into financial trouble down the road and maybe try to refinance their way out of it, they find they don't have enough equity to do so.

I mean the right price, NOT putting a large down stroke, or an I/O loan, or an adjustable mortgage.

Compare apples to apples and get the best deal.

So if you looking for an apple and apples are hard to find, then as a agent your gonna put that apple buyer on the rack until one pops up.

And you are correct we are talking apples and oranges.

Where Plums, Apples and Pear Are The Fruits You Find.

make sure you're not comparing "apples" to "oranges" when you're saying that the surrounding houses are worth 300k plus.

Let's say the land is worth $ 4,000,000 so LTV on note is 50%.The note is a 5 YR Balloon, I/O due in 5 YRS the amount is for $ 2,000,000 with the note rate at 9% interest only for 5 years.Interest payments collected monthy would be $ 15,000 with $ 900,000 collected over 60 months and $ 2,000,000 due at month 60.What could I expect if I wanted to sell this note?

Not knocking degrees, ( I have a BS, a Master's + a graduate certificate) but you're comparing apples to oranges.

ALWAYS assume you will have a 90% 30 year mortgage, just so you can compare apples-to-apples...and to that point:Taking the other extreme: Imagine that you have a house fully paid off, so that your only expenses are taxes, insurance, repairs, and property management.