How to make my note sellable? - Posted by Bob Ridge
Posted by Bob Ridge on August 18, 2003 at 16:09:46:
I loaned an investor in Dayton 23K to buy a rehab property out of a bank’s REO department. We planned on a quick turnover of the property, so we set up a simple promissory note calling for a total balloon payment of 28K in one month, or 31K in two months.
Now that we’re past the two-month period with the property unsold, we’re trying to come up with options. No one seems to want to give her a refi loan, though her FICO score is decent with no foreclosures, bankruptcies, late payments, etc. She is willing to rent or lease option the property from me, but I’d like to get out of the situation quickly.
I was thinking of redoing the note in a form that would be attractive to a note buyer. Any suggestions on how to structure a note (years, interest, etc.) so that a buyer would be willing to pay me the full 31K for it? It would be secured by the property, which has appraised three times in the past few months in the 50K’s. Thanks in advance for suggestions…