on a $56 million loan. Really?!!

So he's not selling this means the financing is just really beneficial.

25 points though...

He may be a MUCH better credit risk -- already has the assets....

fixed or floating? I've got a mortgage on an investment property at 2% (floating of course)

why would he need/take a mortgage?

Because he's leveraged out the butt like everyone else. Are you suprised our entire world economy almost collapsed?

wouldn't you take a mortgage if you could get a 2% fixed rate mortgage? that's free money.

happy: NO, not a chance.....what would you do with the money???

What would I do with 2% money? wow patient, you must have very, very little self-confidence if you don't think you can find a safe investment to perform at better than 2%. With no creativity at all you could buy a 10 year muni yielding 3.5%, for instance. That's just an obvious option off the top of my head. Personally, I'd be more ambitious. But if you don't think you can deploy 2% money you must think the world is about to end.

"With no creativity at all you could buy a 10 year muni yielding 3.5%, for instance."

What's funny is, this is the exact same logic that saw a ton of people lose their shirts on CMOs.... just searching for that extra point.

If you really think the spread is there for no real reason, and that muni's are 100% safe, I've got a bridge to sell you.

You really think the risks of municipal finance is worth an extra 1%?

wow.