Help! Land Contract... - Posted by John

Posted by andy on March 30, 1999 at 24:02:58:

check out , the noteworthy news letter, ask around to see if anyone is interested in that note, or check out metropolitan mortgage, they buy more paper than anybody that i know of. good luck!!

Help! Land Contract… - Posted by John

Posted by John on March 29, 1999 at 13:27:03:

However I did post the same message on the Cash Flow board. I don’t know how many people read all the message boards…

A local business man approached me regarding a recent land contract that he put together. He had asked me what I thought about the way his attorney structured this deal. Also he had asked if there was a possibility that I could sell this land contract so he could pull out some cash. The contract reads as follows;

FMV - $40,000
Sold For - $25,000
Downpayment - $1,500
Financed Amount - $23,500
Term - 20 years
Payments - $211.44
Interest Rate - 9.0%

This is a fresh land contract, no seasoning, borrowers have basically no credit. Owner wants the borrower to carry $30,000 property insurance, and $300,000 liability insurance on this house. What about the $300,000 liability insurance this sounds a little high. Late payment would be 2% of the mortgage amount if 15 days late.

Would this land contract be marketable? if not what could be done to make it marketable?
WIIFM - By helping this man out with this land contract what would be considered a good percentage to charge if this note was to sell?

Thanks for any input…