Reasonable expectations of discount on created note sale - Posted by BankRobber
Posted by BankRobber on March 18, 1999 at 21:56:10:
I am investigating alternative methods of financing my short term property flips. If I owned a $100,000 property free and clear and created a 15% interest, 4 month ballon, $60,000 first Deed of Trust on it. Then advertised the Note for sale on one or more of the popular(?) note sales boards, what would be a reasonable discount that I would expect to have to sacrifice? 1%?, 2%?, 3%?, 4%?
I calculate that a 2% discount would yield an investor an annualized rate of more than 21%, but would this type of short term, unseasoned, less than arms length note be of interest to note buyers?