How much discount? - Posted by Michael

Posted by Bud Branstetter on April 12, 2000 at 11:30:49:

Most note buyers will limit the purchase price to 80% of value or purchase price. Less for nothing down deals. The discount on that note is dependant on if the services of a broker are used or if you go direct. A 5 to 8% fee is not uncommon for a broker. There is an article on working with private investors and selling the note that way if you want to look.

How much discount? - Posted by Michael

Posted by Michael on April 11, 2000 at 12:05:29:

I want to purchase RE (SFR) by creating a note to sell to
purchase the property. What discount do I need to negotiate as purchase price for the property in order to have a marketable note in today’s market? My credit is not good, so I need to sell the note at some discount where credit is not considered. Is that level 80%, 75%, 70% of appraised value? Would that note sell at face value or is there typically an additional discount required? Thanks