Originating attractive notes for sale - Posted by Keith Thomas

Posted by Chuck on July 03, 2003 at 14:46:56:

lol… yea, sure they are…

Originating attractive notes for sale - Posted by Keith Thomas

Posted by Keith Thomas on July 03, 2003 at 12:37:46:

I met a mortgage broker recently who would like to start using private investors to fund a lot his client’s deals. His clients are investors with large real estate portfolios who are having increasing amount of problems getting funding through normal lender guidelines.
My questions is one of the marketability of the notes. The investors are purchasing with no money down and actually no money out of pocket as all the closing costs are financed as well. However, they are buying properties at such a large discount that the LTV still ends up being less than 75% and sometimes under 65%.
All the other details seem to be in order. Good credit score on buyer, good payment history on other loans, solid employment, etc…
The broker would originate the note and I would broker it to the final investor.
Is this a marketable situation with say a 30 year fixed at 8-10%, non-owner occ.?
Does anyone have any ideas on how I can pursue this possible opportunity?


New notes for investor purchases… - Posted by Michael Morrongiello

Posted by Michael Morrongiello on July 06, 2003 at 17:37:15:

Most note investors do not like to purhase newly created seller financed “paper” where the buyer has little or no money at risk. Also they are far more conservative with an investor as the proposed Note payor as opposed to an owner occupant payor (as is the case loan industry wide).

We purchase newly created seller financed “paper” all the time and can be instrumental in structuring a win/win deal for all parites concerned, however we are NOT miracle workers.

Our funding exposure limitations for investors are somewhere around 75% to 80% “ITV” investment to value depending on their down payment, seasoning, overall credit profile, and credit scores,etc.

So YES “paper” can be an alternative tool if use and structured wisely.

To your success,
Michael Morrongiello