Real Estate Investing Forums

Real Estate Investing => Foreclosures, Short Sales, Tax Foreclosures => Topic started by: NoteSeekers on July 04, 2019, 03:34:00 pm

Title: How to get the best cash offer for the real estate notes
Post by: NoteSeekers on July 04, 2019, 03:34:00 pm
Many note holder are looking for investor or buyer that can offer them their desired value of their property, however they have to make sure that the credit score of the note is excellent so that note buyer will give a quote offer without further ado. In this matter, how does the note holder can make sure that their notes can get a best quote offer they want?
Title: Re: How to get the best cash offer for the real estate notes
Post by: javipa on July 04, 2019, 09:13:17 pm
I'm not an expert at notes, so take what I say with a grain of salt.

In my experience, notes are often created when the note payer has weak credit, lack of cash, or there is some 'issue' that required the buyer to create a note in favor of the seller.

That said, whenever I've investigated what a note was worth, the broker wanted to know how fast the note paid off, how old the note was, and what the note was secured against, and in what position the note was (first, second, third, or forth position).  There were other things I can't remember.

All those factors, and more, go into the risk/reward analysis of a given note.

So, fresh (unseasoned); low-interest; long-term notes; in junior positions, with low-equity, aren't worth squat ...REGARDLESS OF THE PAYER'S CREDIT.

So, if you want a better resale price, raise the interest, shorten the term, improve/add to the collateral, and let it *season for a year, or more (*showing on-time payments).

I would say, 'any note's value is created when it's made, not when it's sold.'

Hope that helps a little.