Note Creation Question... - Posted by Harley-CA

Posted by Rick Roberts - KC on February 03, 2001 at 06:29:34:

Harley,

Your question is a very good one. You are wise to understand these factors up-front, rather than at the point that you go to sell the note and become suprised at its value (or lack thereof). Our evaluation criteria importantly include the following:

THE NOTE

  1. Number of payments collect, if any
  2. Timeliness of payments made and quality of supporting documentation
  3. Beginning/current LTV of note
  4. Terms (interest rate, amortization period, balloon, etc)

THE BUYER

  1. Amount of personal cash being used as down payment
  2. Quality of past and current credit (trade lines, scores, judgements, etc)
  3. Employment profile (length at current job, length in current job-type, income documented or stated, etc.)
  4. Debt to income ratio

PROPERTY

  1. Occupancy
  2. Type of property
  3. Appraisal type and our evaluation of overall property quality
  4. Flip involved

I hope that this quick and general overview is helpful.

Rick

Note Creation Question… - Posted by Harley-CA

Posted by Harley-CA on February 02, 2001 at 19:33:34:

Hello again all,

I have a question about note creation. On a simultaneous closing, where I purchase from a seller, carry back a portion and create a note at closing to sell, what are note buyers looking for in terms of the payor on the note? What criteria do they consider important for me to have set up before hand?

Any input into how to prepare my buyer so that the note is attractive to note buyers would be appreciated.

Harley-CA

Re: Note Creation Question… - Posted by David Butler

Posted by David Butler on February 04, 2001 at 01:23:39:

Hello Harley,

Hey… that’s one thing we have a lot of discussion on around here. And even though you are asking about simulataneous funding in particular, many of the same general things are going to apply - and Rick covered the generic ground on that very well. A few more very handy and a bit more specific points have been addressed in a recent post at: http://www.creonline.com/cashflow/wwwboard3/messages/8926.html

We’ve also had a slew of related discussion at: notenetwork.com - This website is for sale! - notenetwork Resources and Information.
a great many of which are headed as “RE: Simultaneous Closings…(whatever)”, including some very recent that should be helpful as well.

Best of luck in sorting things out!

David P. Butler

Re: Note Creation Question… - Posted by David Butler

Posted by David Butler on February 04, 2001 at 01:22:58:

Hello Harley,

Hey… that’s one thing we have a lot of discussion on around here. And even though you are asking about simulataneous funding in particular, many of the same general things are going to apply - and Rick covered the generic ground on that very well. A few more very handy and a bit more specific points have been addressed in a recent post at: http://www.creonline.com/cashflow/wwwboard3/messages/8926.html

We’ve also had a slew of related discussion at: notenetwork.com - This website is for sale! - notenetwork Resources and Information.
a great many of which are headed as "RE: Simultaneous Closings…(whatever), including some very recent that should be helpful as well.

Best of luck in sorting things out!

David P. Butler