Posted by Charles Steed on January 25, 2001 at 14:30:45:
In a situation like this, you become very important. As the expert, (even if you aren’t an expert yet, act the part and soon it will be) you are the one making things happen. The seller needs cash. You bring the cash to the table. You’ve got to convince the seller to first offer seller financing which you will purchase out of escrow. I suppose you could wrie up a simple agreement with them stating they’ll sell the note to you, but if you structure the deal properly, you will have to be involved just to make it happen.
Remember, the parameters for note buying. Critical Factors, in no particular order are:
- The condition of the property.
- The financial condition of the people making payments.
- Seasoning - In this case there will be none, (that lessens the value of the note)
- The down payment
- The interest rate, and term of the note.
- The FMV of the property.
- The position of the note…1st, 2nd etc.