Posted by Bud Branstetter on March 26, 1999 at 09:33:59:
Since note buyers like notes with LTV less than 80%, do just that. Balloons increase the value. Keep track, make copies of checks received. A first can have a higher interest rate than the second. How about a 70% first and a second up to 90% of value. Aged seconds can be sold at about a 1% greater return than the first.
Question #2 - Posted by MikeSC
Posted by MikeSC on March 25, 1999 at 20:16:34:
First, I would like to thank all of those that replied to my question last night. Here is question #2. ( Maybe this will be a serial…MikeSC’s daily point to ponder hehe )
Lets assume for the sake of arguement that I have purchased a property and have decided to sell it. Let also assume that I have a buyer that wants me to owner finance it for him. Lets use some easy numbers. I sell it for 50K and the buyer has 5K for a down payment. Lets also assume that I want to keep this note BUT I want to have the option to sell it if I need/want money. What requirements should I have for my buyer? How strict should I be on credit terms? Won’t note buyers mainly look at LTV and payment history? I realize that these buyers will generaly not have stellar credit nor do I expect them to, but I also don’t think that I should just accept anyone.
Once again, thanks in advance for your help. It is much appreciated!
MikeSC
Re: Question #2 - Posted by MikeSC
Posted by MikeSC on March 25, 1999 at 20:18:27:
Opps I made a mistake in my email addy. If you would like to email me, please use the link abouv this message and not the original. Thanks.
MikeSC