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NEIN | Your numbers prove my point but they do not take into account the tax rates thus the true cash flow needed to service the debt. In your examples the higher interest resulting in much more deductible amount of the total payment means the tax savings allow you to pay it back much easier. If your in the 50% tax bracket which scenario do you want? Ill take the higher interest any day. Couple that with declining net revenues no matter what the price of land is today the price tomorrow will fall and drastically. | |
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$$$ are going to be way short this year.
