Hey Kevin, you might want to try the commercial tab at the top of the page, you will have a maroon background instead of the blue residential background.
I think the confusing part is you are stating Simultaneous close, which means there is more than one closing that needs to happen. Are you talking about selling your owner financed notes at closing for cash?
If you are planning on selling the note at close, the biggest factor is going to be your buyers credit/income, the amount of the 1st note and the amount of downpayment. I would contact someone that advertises that they buy notes in your area and find out what they would offer you if a note was structured in a certain way.
Ask them to price a 1st position note at 85% LTV, with 5% down and a 10% owner carry back. That would be the absolute minimum I would offer if I were carrying back, that gets $87.5K, less note buyer discount, plus a note at $67.5K and I would put a 3 or 5 year ballon in that one.
Then if you can get someone to put more down, or you are willing to carry back more of a 2nd, your discount will be lower, the uncaptured variable though is your buyer which can greatly affect your note discount.
If you can hold on to the notes for a while that will help as then you will have seasoned notes and a track record of payments.
Hey Kevin, you might want to try the commercial tab at the top of the page, you will have a maroon background instead of the blue residential background.
Good Luck.
I think the confusing part is you are stating Simultaneous close, which means there is more than one closing that needs to happen. Are you talking about selling your owner financed notes at closing for cash?
If you are planning on selling the note at close, the biggest factor is going to be your buyers credit/income, the amount of the 1st note and the amount of downpayment. I would contact someone that advertises that they buy notes in your area and find out what they would offer you if a note was structured in a certain way.
Ask them to price a 1st position note at 85% LTV, with 5% down and a 10% owner carry back. That would be the absolute minimum I would offer if I were carrying back, that gets $87.5K, less note buyer discount, plus a note at $67.5K and I would put a 3 or 5 year ballon in that one.
Then if you can get someone to put more down, or you are willing to carry back more of a 2nd, your discount will be lower, the uncaptured variable though is your buyer which can greatly affect your note discount.
If you can hold on to the notes for a while that will help as then you will have seasoned notes and a track record of payments.