What is the % of what I could sell a note? Would a note buyer only buy if the numbers and payents are low?
There is no set %. There are alot of variables the underwriters concider.
For instance the shortest term, the interest rate, the buyers credit profile, the downpayment, balloon yes or no, the current appraisel value etc.
Google Note Buyers or investors.
I like Mike at sunvestinc myself.
herbster
Oops, forgot an important one. The LTV ( loan to value ), must be 80% or less.
BTW you can sell just a portion of a Note. That way you can sell 10 years worth and then collect payments on the remaining 20 years in your example.
herbster
:cool
Herbster is correct there are a lot of things a note buyer looks at not just the terms
And with things as they are now they look hard at the buyer/payers credit >>> and how much they put down if any :beer
As per your original post you might get 80% now for a perfect Note where as 6 months ago you could’ve gotten 90%.
Note investors also look at the wording of the contract, example a note with recourse vs. one w/o recourse.
You would save by going direct to the investor cutting out the middle man.
I believe all Note Buyers would quote you for free.
herbster