Posted by ScottE on April 07, 1999 at 21:49:37:
John,
You lost me with your last post. Do you mean a higher rate WOULD make a note more attractive? If you create a note on a vacant house, to rehab lets say, how could you create a note with much safety (there would be no seasoning because no tenant/buyer yet), unless YOUR credit was good?
Is it all based on the value of the asset?
Thank you
Scott
Discount Note Buyers??? - Posted by Steve
Posted by Steve on April 05, 1999 at 16:12:44:
I’ve been to several web pages that deal with note brokerage and purchasing/selling. I want to create a note to finance a rehab. but was wondering if anyone will actually pay face value for it. I see that many people are buying notes as low as .50 on the dollar.
Has anyone had luck selling a note at face value or slightly below??
Selling at face value - Posted by John Behle
Posted by John Behle on April 05, 1999 at 23:36:44:
It’s rare to sell a note at face value, but to sell them a little below face is easy if it is structured right. There are numerous potential buyers listed in the directory at www.notenetwork.com
How is that done? - Posted by Sean
Posted by Sean on April 07, 1999 at 15:49:49:
Do you offer a high interest rate, quick amortization or what?
Much Competition in the “Prime” notes - Posted by John Behle
Posted by John Behle on April 07, 1999 at 19:50:37:
There is a great deal of competition in the “prime” side of the note industry right now. What has happened is that some buyers have been funding as high as 95-97% on notes. The face rate doesn’t have to be much over market, they just have sacrificed both yield and safety to fight the competition.
Foolish.