Posted by phil fernandez on May 24, 2000 at 19:04:11:
There are a number of note buyers out there who purchase owner financed notes. There are also alot of note brokers who would buy the note and then sell that note to a large company like Metropolitan or American Note. Keep in mind many of the so called note buyers are actually note brokers that do not come through or start changing the discounts along the way. Lotta flakes out there.
The guy I like when selling notes is Mike Morrongiello at firstname.lastname@example.org
Mike is very knowledgable on showing you how to put your deal together.
What note buyers are looking for would be an interest rate of say 11 - 12%, 30 year amortization. Some like balloons and other don’t. If you do a balloon, make sure the ballon is out there 7 to 10 years. The note payers credit will be looked at along with employment. Title insurance and an appraisal will be needed also a 1003 loan application.
You want to do a 100% financed deal, the note buyers in all probability will want to see at least 5% of your own money in the deal. If you have excellent credit and if the note has been seasoned, that requirement could be waived.
You might also want to post your question on the Cash Flow section of this site where John Behle and the other note regulars can help you.