Buying my 1st partial~~ what docs? Help? - Posted by steph in tex

Posted by John Moren on June 08, 2000 at 21:49:19:

You’ll need a good partial purchase assignment. You also need to know if you are buying the partial at a discount (you get a bump if it pays off early) or at a yield (fixed yield in case of early payoff) and your doc’s need to reflect that. You may be able to find some doc’s at your local office supply if they are well stocked or you can do some “legal research” at the county recorder’s office to see what people before you have used. Did you recently take a course? Perhaps someone there can provide you with the doc’s. Have you made contacts with any of the national buyers? Maybe your contact could help, especially if you might later buy the tail (you should try later on) and maybe broker it. If none of these suits you, send me an email.

Buying my 1st partial~~ what docs? Help? - Posted by steph in tex

Posted by steph in tex on June 08, 2000 at 09:25:09:

I have worked out an agreement to buy my first partial!
Yeah! This is my First True out and out note purchase! Nothing big… but good for practice!

I am holding many notes that I have created through the sale of property, but this is my first buy!! I’m so siked!
It is starting to make sense!

All I’ve done so far is worked out with the seller that I will buy the first half of his 2nd lien note. He just needs a fast 2k that he’s short for another investment. I though… hey? sounds like good practice with a risk I can afford. And I’m still cramming the paper game into my head, and dying to try something! I just had no idea the impact it would have on my brain!! anyway~

The whole original note is for 8K amt over 30 @ 12.5%. It was created just 2months ago. The payor has a credit score of 689, and put 10% down. I have agreed to buy the first 180 payments for 2K. WOW! I love this!! I know there is some risk with the note being new, and this being a second~~ But I want to play!!
I think I’m hooked!!

Seriously folks…
The beauty of this is, that it is allowing me to understand this side of the business. I can’t convey what a breakthrough this is for me!! Do you guys remember the exact moment when something made sense for the first time?
I’m standing on the second right now! AWESOME!

My question is what do I do now? What docs do I need?
OH YEAH~~ plus a bonus! I’m buying this with my IRA!

thanks in advance!

steph in tex

51.2% tax free can jump start those “greed glands”! - Posted by John Behle

Posted by John Behle on June 16, 2000 at 20:20:09:

Sounds like it might be an 80/10/10 deal. If that is the case, then your ITV is about 82.5%. A little higher than ideal, but not too bad. You’d have to be ready to make payments on the first if needed.

But… a yield of 51.2% is very nice. As Mr. Donovan mentioned, the preferable way is to use the compensating note technique. That’s in the videos and there have been several posts here discussing it. Those posts are in the archives, but we searched most of them out and put some easy links to them at my site under “paper posts.”

Good job! I’m proud of ya.

Re: Buying my 1st partial~~ what docs? Help? - Posted by Craig

Posted by Craig on June 13, 2000 at 16:38:34:

I’m not sure if you’ve already found your doc’s or not. If not you can go to and click on their “Notebuyers dollar store” link. They have 2 partial purchase contracts that you can download for $1.00 each. Hope this helps.

As a side note I too think the idea of purchasing the whole note with another note and substitution of collateral is a better idea.

Dont do it that way. - Posted by MDonovan

Posted by MDonovan on June 09, 2000 at 09:17:54:

Partials are great until something goes wrong. If you haven’t covered every little eventuality, there can be problems. The safest way is to have him assign the note to you, and you make a new note equal to the remainder payable to him, secured by the old note.

Example: new note 6,927 amt over 180 mos. @ 12.5%, first payment due in 180 months, no interest until 180 months. Your balance at 180 months will be the same as this, so at the end, you could just swap notes. Or, substitute collateral and keep paying, etc.

This cures all the problems with partials.