Creating Notes - Posted by Charlie


#1

Posted by Paul(ok) on January 10, 1999 at 12:09:29:

I am absolutely as far from being all knowing so take that into consideration FIRST. It seems what I hear on this board is because loan to value ratios are so low on unimproved land seems like I recall 50%, but dont use that as the rule. check with the king of “notedom”. for absolute accuracy.


#2

Creating Notes - Posted by Charlie

Posted by Charlie on January 10, 1999 at 11:36:21:

Friends,

I continue to sit on the sidelines and absorb information on this site. I am curious about the creation of mortgage notes on small parcels of property . I have not seen much mention of it on this site. Is there a specific reason for it’s lack of discussion or is this the wrong forum for it’s discussion. Also, if there is an individual that partakes in this activity please contact me for further exchange of thoughts.

Thanks,

Charlie


#3

Low demand - Posted by John Behle

Posted by John Behle on January 11, 1999 at 14:07:09:

Most buyers are not interested in non-residential or non-income producing collateral. There are some buyers of land notes, but they usually are looking for notes where building is in the plans.

Buyers look at the worst case scenario of owning the collateral if people do not pay. Local buyers might be OK with some land, vacant properties or rehab scenarios, - but most out of state or national buyers are not willing to deal with those types of collateral.

For example, in Utah I will look at almost any form of collateral and have bought land notes, food supply notes, even un-secured notes. I would not do that out of state.


#4

Re: Creating Notes - Posted by MN~Chicago

Posted by MN~Chicago on January 10, 1999 at 14:58:49:

Hey Charlie:

I am almost as qualified as Paul to offer the
following.

True, vacant land is not on the upper tier of
desired notes. However, that could mean great
opportunity depending upon the circumstances.

I would post a specific example of what you
have in order to get a better handle on it.
In the process, the rest of us can gain from
what you learn,

Michael