Using Notes as Collateral - Posted by Steve-Atl

Real Estate Investing
1

Posted by John Behle on May 25, 2000 at 13:03:26:

Institutional sources are rare, but a “Broker Line” account at First National Acceptance Corp. is one possibility. They will loan against your notes. You can also cultivate banking relationships and use the notes as collateral - depending of course on the credit, LTV, payment history, etc. of the notes.

My favorite source has always been private investors. You can get as much as 100% financing on your notes you create - depending on your rate and above factors. When you are buying notes, investor financing can actually finance 100-120% or more of the purchase price and still provide a very safe, secure, profitable investment for the investor. We’ve talked a lot about financing notes through both institutions and private investors here and there are many articles and posts related to the subject and indexed at www.papergame.com.

2

Using Notes as Collateral - Posted by Steve-Atl

Posted by Steve-Atl on May 25, 2000 at 09:19:02:

Each day in this business I learn something new.

I have been active buying and selling houses. In some cases I have created notes to finance the purchase. So far, I’ve been keeping the notes, although I know there is a market for them at a discount.

Now I hear about the concept of using the notes as collateral for loans. I heard its possible to get a loan of 70% of the face value of the note. Is this true? If so, what terms can I expect and who makes these loans?

Thanks for your response!