american note network & selling first mortgage 63%LTV - Posted by Jason Perry_NH

Posted by Craig on June 21, 2000 at 16:05:42:

If the paper you are selling is far from institutional quality then you may want to list with ANN. Otherwise you will probably wind up with a lot of offers that are exactly the same. If you already have a relationship with an investor or broker there really is no need to shop your paper around. I’m sure you will not get any offers that are remarkably different from what your current investor is offering.

american note network & selling first mortgage 63%LTV - Posted by Jason Perry_NH

Posted by Jason Perry_NH on June 21, 2000 at 13:06:25:

has anyone had experience with ANN –
good or bad?? is it worth the $$ to sign up to buy or sell notes.
reason for the question is:
i have a property appraised at 111k, that we picked up for 64600. – my thought is to sell a new first mortgage on the property at 70k = 63% LTV , and get what i can for the note (is it correct, that you can get 95% payout?, like in the success stories?)
and keep a second on the property for the remaining equity when we sell – 40k±.
I have had great experience with Morrongiello at Sunvest, but have heard that I can also sell on the market in ANN…
Thanks again.

Re: american note network & selling first mortgage 63%LTV - Posted by Paul_NY

Posted by Paul_NY on June 22, 2000 at 04:15:13:

Hi Jason,

ANN is great. Quotes to buy your note will come in for a week. All will try to get you to commit right then on the phone.

My suggestion:
Make your 1st mortgage for 80% of the appraised value. Don’t you want the most cash from the sale of the note? Make the first as big a possible and the second as small as possible. What if the payors default? You may get little or nothing on the second. Also, try to get a 10% or better down payment (The notebuyers like to see a downpayment) and document everything, including the monthly payments received during the seasoning period. Seasoning is a record of the monthly payment received from the new buyer of your property. Three months is minimal seasoning.

The best notebuyer offers will be 90 cents on the dollar unless the credit of the payor is outstanding. The 97% advertised by notebuyers is for payors with excellent credit. In the owner financing field, they are few, otherwise they’d be getting a better interest rate at the bank.

Most notebuyers will want a nationally certified appraisal, so you may have to pay for another appraisal. Also, figure in the cost of a Lenders Policy.

Hope this helps.
If I can be of further assistance, email me.