SELLING A NOTE... - Posted by Garrett

import · March 21, 2006, 4:52pm

Posted by Jason (AL) on March 23, 2006 at 19:58:21:

I’ll keep those parameters in consideration, as I’m looking to do such deals.
But, for example, would I put a property under contract 1st contingent on (the note) financing?
I’m guessing this would be the best route to go should I run across a viable deal.

Thanks for the info.
Hopefully, I’ll be in touch with ya soon.

import · March 21, 2006, 4:52pm

SELLING A NOTE… - Posted by Garrett

Posted by Garrett on March 21, 2006 at 17:52:47:

Hey everyone!
Just wondering how selling a note works.
here the details:

property value $380k
1st position note = $280k
interest 8%
2 years of timely payments
no balloon

what sort of ballpark figure am I looking at if I want to sell this note for cash right now?

thanks
Garrett

import · May 16, 2006, 11:18am

Re: SELLING A NOTE… - Posted by Dale Simmons Enterprise

Posted by Dale Simmons Enterprise on May 16, 2006 at 11:18:39:

Garrett, go to my site www.cash4cashflows/dsimmons1 click on the Sell your note, select Real Estate Note fill out the form as complete and I will send you a no oblation quote

import · March 23, 2006, 2:43pm

Re: SELLING A NOTE…Devil in the details - Posted by Michael Morrongiello

Posted by Michael Morrongiello on March 23, 2006 at 15:43:17:

Garrett:
Gee, I dunno, I have a 1967 Thunderbird in mint condition out in the parking lot- what would you pay me for it?

A Note investor worth their salt NEEDS details and more issues provided in order to properly evaluate a Note;

Some of the questions and details needed here include but may not be limited to:

Type of property invovlved?

Actual Sales price of the property?

Buyers down payment?

occupancy & use?

Condition?

Buyers credit profile and credit scores?

The actual monthly installment amount and overall repayment terms?

Was lender (a LOAN title policy) title insurance obtained?

With more of these “blanks” filled in a rough idea of the the notes cash value today can be formulated.

Best to your success;
Michael Morrongiello
www.sunvestinc.com

import · March 23, 2006, 4:12pm

Michael…how does one know, initially? - Posted by Jason (AL)

Posted by Jason (AL) on March 23, 2006 at 17:12:32:

Just ordered your course to add an “edge” to my business (expecting it to arrive within the next couple of days)…

Anyway, say I were to structure a deal with a seller in which they’re to sell their owner-financed note for cash at closing…
How would I/we know initially that the note would actually be purchased at the closing?
I mean, I wouldn’t want to promise that I’d “deliver” and things not pan out on the purchase of their newly financed note.

Obviously, I know it is crucial to create a marketable note in the 1st place (sufficient down from a buyer, their credit/job situation, location/condition of property, sales price, etc. etc.)

Am I making sense?

Thanks,
Jason

import · April 23, 2006, 7:40pm

Re: Michael…how does one know, initially? - Posted by Kenneth

Posted by Kenneth on April 23, 2006 at 19:40:12:

Good answer earlier to needing details…
The information I usually gather is

orignal selling price
down payment
original note balance
months/years financed and interest rate
monthly payment
balloon
owner occupied
underlying balance
credit of payer
property type
property description

Now regarding the comment about being able to
know if you can cash out their owner-financed
note…

Get it into contract and set up a similtaneous
close to cash them out at the same closing…

To Your Success

Kenneth Edwards
Helping People Fulfill Their Dreams
http://www.247mortgagenotebuyer.com

import · March 23, 2006, 5:51pm

Pre-Flight your deal… - Posted by Michael Morrongiello

Posted by Michael Morrongiello on March 23, 2006 at 18:51:38:

Jason:
Thanks for your order or my Unity of Real Estate & “paper” study course…

How do you know if the Seller financed “paper” will get bought? Well just like an airplane pilot who gets out on the ground and inspects his aircraft prior to its flight, you will “pre-flight” your deal if you will with a prospective Note Investor / Funder (like Sunvest) who will take your transaction parameters and advise you that they will be able to acquire via an assignment ALL of the property / Note sellers rights, title and interest in the seller financed Mortgage & Note.

A very general rule of thumb is that most seller financed “paper” if set up properly at the onset can be sold / assigned to generate somewhere between 88% to as much as 95%(clearly depending on the size of the Note and other variables).

Best to your success;
Michael Morrongiello
www.sunvestinc.com
Author of the Unity of Real Estate & “paper” Study Course