Re: How to Create and Sell a Note? - Posted by John Behle
Posted by John Behle on October 15, 1998 at 12:26:03:
The first pitfall would be creating the note first and then trying to sell it. It might end up being a note that is not saleable, or would discount heavy.
There are two types of note buyers to possibly help you with this. The national buyers like Metro can do deals like this, but run into the hesitation of the difference between the value and the purchase price. They tend to give the higher prices, but have tighter restrictions.
A local buyer might be a little higher in their yield, but may have access to both institutional and private funds. Look in the paper under the ads or call around to some Realtors or investors that might know some.
Tell the note buyer what you are trying to accomplish and ask how he or his buyers would like the note structured to meet both your needs and his. A “note newbie” that is just starting may be at a loss for this one, so look for someone who has been around awhile and has his own funding if possible. I don’t know where you are located, so if you want to let me know, I may have someone I can recommend.
There are also several websites where you can post a note (list it) and access information on buyers. The biggest is www.notenetwork.com. I’d guess as little as 10% of the buyers out there could help with this, but they are there. Depending on the state, I may be able to help with it or have an experienced broker to recommend.
There are of course other pitfalls, I’ll see if I can fax or email an article I wrote for Realtors on “Seller Financing Do’s and Don’ts”. Might not be until Saturday as I’m leaving for a couple days right now.