South Florida Note Buyers Truth Or Dare - Posted by garth

Real Estate Investing
1

Posted by Garth on March 15, 2002 at 12:32:34:

Thanks for your response. I know you are busy
so I know it takes special effort to respond.

From reading your post and others here is the profile
in a nutshell of what the buyer and seller should look
for.

Seller can cash out notes up to 95% even with none owner occupied buyer

Home buyer should put down 5% and score above 550

Seller should finance at 9% or better fixed rate
no ballons

Seller has almost zero closing costs

Buyer of house has closing costs about $2,000

House would need to appraise for whatever you sell it for

Closing less than 2 weeks after appraisal

So advantage for seller is lowered closing costs but
buyer may end up with higher fixed rate and higher
closing costs that other 95% investor loans.

2

South Florida Note Buyers Truth Or Dare - Posted by garth

Posted by garth on March 12, 2002 at 20:10:20:

Hi, just wondering what the typical south florida
note buyer would structure this.

Duplex
2/1 & 1/1
appraiser valued property after repair
120K. Needs roof repair and some cosmetics.

Tenant Occupant wants to buy live in 2/1
rent out 1/1. Appraiser estimate of rent for 1/1 575 per month

Income
Tenants income husband/wife 2,020 per month both have working their jobs for over 5 years.
Income from 1/1 575

what is max cash note buyers would pay out on this
and how should note be structured to get that cash payout?

3

Dare to provide some details… - Posted by Michael Morrongiello

Posted by Michael Morrongiello on March 13, 2002 at 22:02:57:

Garth:
Lets play … How about some more details?

  1. Property sales price? All you providd was the After repaired value. What is the property selling for?

  2. Buyers cash that is going to be put down?

  3. Buyers employment? Stability?

  4. Buyers credit profile?

  5. Buyers Credit scores?

The TRUTH is that with the right deal structure, the seller financed purchase money 1st lien mortgage can more often than not be sold to generate a CASH lump sum payout in the approx. 92% to approx. 95% of its balance.

To your success,
Michael Morrongiello