That means I am going to spend, on average, over time, $375 per month.To the extent that my cash expenses are less than $375 per month (again, excluding debt service), it would be prudent of me to earmark the balance to some replacement reserve account, assuming that I don't just happen to have a ton of money in the bank to cover the unforeseen.If I were using accrual accounting for my properties, I'd accrue the different between $375 and each month's net expenses and set those funds aside for replacement reserves.I don't mean to speak for him, but I think when J.

Some bond issues are only obligated to pay the interest accrued to that date, if you turn it in a month later, but prior to maturity, there is no additional interest accrued as there is with a note.

Well, as to the value to be offered, after reviewing all the information submitted and inspecting the note as well as the security agreements, the loan file, origination documents and working papers together with settlement documents and the original contract and in taking into consideration the outstanding liens, accrued taxes and costs expected in collection of the debt, and in consideration of the collateral, I would present an offer in the amount of:$352,687.29ARE YOU KIDDING ME?

Hi Jon,initially I was peeved about that - where's all that great tax benefits that are supposed to accrue ?

And the original note amount may be quite different from the actual accrued debt - it is the debt amount that the noteholder is entitled to receive.

The difference with them getting a judgement is it will junk up your credit and the judgment will keep accruing fees and growing in balance.Yes you can negotiate the promissory note down.

Interest accrues on the unpaid principal amount outstanding, it has nothing in the world to do with the amortization period!

You stand to lose the principal and accrued interest as well as other penalties.If you are not willing to just get your money backin a payoff from a junior lender or going to foreclosure and selling the property to cure the deficiency, then you should not be lending.

The basis of the property is the total cost paid; this would include any repairs, improvements and accrued costs before the date the property was placed in service.

However, the end goal in investment is to pay less, accrue more without hoping for appreciation.