Notes sale = cash - Posted by Michael Morrongiello
Posted by Michael Morrongiello on January 18, 2001 at 21:54:50:
I am not sure what “not so perfect credit…” means?
Typically you would like to get at least 5% cash down from a prospective buyer and then also carry both an 80%LTV - %85%LTV 1st lien that would be set up with a 360 month amortization term and at the rates you suggested (11% -12%). The lattitdue on the Loan to value threshold and interest rate charged on the note will depend on the quality of buyer you have and their overall credit profile, their credit scores, employment, stabiliy, etc.
It is feasible to take back a 90% LTV 1st lien note if you can get a better credit buyer or one with 10% cash down.
The 1st lien note if structured correctly can bring anywhere from 92% to perhaps as high as 95% of its principal balance to you in cash.
Hope this helps.
To your success,