Fibo - Hypothetical - Rule of Thumb - Posted by Marvin Seawood


#1

Posted by John Behle on October 21, 1998 at 10:28:37:

Short term note - small discount. Each deal is different and the amount of cash you can get through selling the seller financing varies depending on how you structure the deal.

You need to know your yield requirement or that of a note buyer and then how much discount is possible for the seller. You can then work backwards to structure a note based on weighing the factors of your yield, the discount the seller is willing to accept and the terms the buyer is willing to pay.

There’s some examples on structuring notes in the article “Paper - Your most valuable tool” in this section. That can help show you how to structure notes to meet the needs of the buyer, seller, agent and note buyer.


#2

Fibo - Hypothetical - Rule of Thumb - Posted by Marvin Seawood

Posted by Marvin Seawood on October 20, 1998 at 23:43:42:

Let’s say I get an owner to agree to carry back a note
which I’ll buy at closing - what is the maximum ratio
(cash in her pocket divided by market value of house)
that the owner must agree to that will enable me to
put a deal together? Or is it just a matter of working
the numbers on a case to case basis?