Thinking about note investing

[Michael Gil]

Hello

I have just started looking into note investing. I am trying to figure out if I am thinking about Note ROI correctly.

The note below has 290 payments left, the principal and interest payment is 470

Do I simply multiple 290 by 470 to determine my total return and the subtract my initial investment?

136,300-40,585=95,715

or am I missing something here?

NOTE TERMS

Lien Position:

1

Performance (PL/NPL):

Performing

Unpaid Principal Balance:

$52,553.12

Property Value:

$76,792.00

Loan to Value:

68%

Original Balance:

$53,500.00

Origination Date:

Feb 8, 2017

Total Payoff:

$52,553.12

Payments Remaining:

290

Interest Rate:

9.75%

Principal And Interest Payment:

$470.58

Escrow/Impounds:

$80.26

Total Monthly Loan Payment:

$550.84

Last Payment Received Date:

Jan 9, 2019

Next Payment Date:

Feb 9, 2019

Occupancy Status:

Occupied

Legal Status:

None

Maturity Date:

Apr 15, 2043

Accrued Late Charges:

$0.00

Hardest Hit Fund State:

Yes

Judicial State:

Yes

Non-Judicial State:

Yes

PROPERTY DETAILS

Property Type:

Single Family

Street Address:

[Login to view]

City:

Wadesboro

State:

North Carolina

Zip:

28170

County:

Year Built:

1960

Floor Size Sq Ft:

1102 sqft

Lot Size Sq Ft:

10019 sqft

Bedrooms:

2

Bathrooms:

1.0

ZILLOW

Zestimate:

$76,792.00

Loan to Zestimate:

68%

Rent Zestimate:

$825.00

Zillow Link:

View on Zillow

[Chris Seveney]

Michael

Many look at time value of money if its a performing note as $1 today is worth more than $1 ten years from now. What you will want to do is look up an IRR or time value of money calculator. For performing notes that is my recommendation

Thanks