Posted by Ed Swartz on June 11, 1999 at 17:20:30:
I had a similar question.
Just the other day I spoke with someone who wants to sell their note on a MH with a balance of about $5-6K.
While I don’t know the figures for all the national buyers it seems to me that $20K to $35K is the minimum amount.
I’d like to start buying notes for my own account and it seems that one potential starting place is to purchase notes which are too small for the national buyers.
Ed Swartz
978-772-0888
Definition of a “too small” note? - Posted by drew
Posted by drew on June 11, 1999 at 14:45:11:
Anyone have an idea of what national buyers consider too small? Under $20K principal? I’m sure that there all have different qualifications, but I’d like to know a ballpark figure.
Thanks for your help!
-drew
Local buyers can be more flexible - Posted by John Behle
Posted by John Behle on June 17, 1999 at 18:26:45:
As Mike mentioned, the spreads are too small for national buyers. Local buyers can look at smaller notes. At times I do notes as small as $1000. We did two like that yesterday. My yield is 47%.
REPLY- Definition of a “too small” note? - Posted by Michael Morrongiello
Posted by Michael Morrongiello on June 11, 1999 at 17:32:30:
Drew:
Many note brokers will not say that they purchase small notes under $20K because they cannot make any money brokering them. Theres is simply too limited a “Spread” between what they can sell the note for to an investor and what they would have to negotiate with you as to a pay price. Additionally, the size of the note does not mean that the costs to process it, and preform due diligence is any cheaper.
Principal Note investors are always happy to look at most notes that are at least $10,000.00 as an outstanding balance or greater where they can buy them and receive a decent return on their investment.
Michael Morrongiello
American Note
Operations Manager
800-659-2274 x 41
415-883-1284 fax
MikeM@americannote.com