Contractor notes - Posted by Willie

Posted by lukeNC on July 11, 2007 at 09:53:07:

You could advertise for them. I’d recommend noteworthyusa.com and papersourceonline.com You can also buy the note buyers registry from papersourceonline.

Contractor notes - Posted by Willie

Posted by Willie on July 05, 2007 at 12:57:03:

Help, I started Calling on some old contacts that I had when I contracted as a handyman.
I have got a response that could become a great deal if I can learn what needs to be done.
I know some contractors that are looking into offering financing and then selling those notes for some of the work they do. The problem is of course they want to insure they would be able to recover the costs and what the exact processes they will need to follow.
I am trying to find out but for some reason have not been able to get a strait answer.
Can these type of notes be sellable and how would they need to be structured?

Re: Contractor notes - Posted by lukeNC

Posted by lukeNC on July 11, 2007 at 04:32:49:

Basically its contractors creating their own notes for the work and then selling those notes to investors for cash.

Typically like this: $2500 job, maybe set it up as a 36 month note at 24% interest (or the max your state allows). Add in a $100 processing and application fee. Its a high interest rate because its high risk.

The contractor could then sell the note at face value, $2500. Thats a 27% yield, which is not bad for most.

Plenty of people would buy a note like that.

Great question – any answers? -nt - Posted by Natalie-VA

Posted by Natalie-VA on July 09, 2007 at 20:05:24:

nt

Re: Contractor notes - Posted by Bob Smith

Posted by Bob Smith on July 11, 2007 at 12:26:55:

How do you work the due diligence? Contractors being what they are homeowner happiness with the work is always in doubt, and deals that small won’t have title work or title insurance (too expensive) which makes your security questionable.

Re: Contractor notes - Posted by Willie Sims

Posted by Willie Sims on July 11, 2007 at 07:56:56:

Thanks
Any advice on what investors I would talk with and kind of set up a pipe line?
I plan on really getting this marketed soon But sure would like to have some investors who can Tell me what the will and will not take?
Thanks Again

Re: Contractor notes - Posted by lukeNC

Posted by lukeNC on July 11, 2007 at 13:32:26:

that would have to factored in. You could also make the contractor a guarantor on the note if you had that issue.