What Makes A Note Easy To Sell
I anticiapate on trying to sell a note later this year.
What actually is involved, and how do I go about it.
How do you detirmine what the note is worth before
you find a buyer. All I know is that a "seasoned" note is worth
more than an "unseasoned" note. Is the principle and intrest
considered the "note".
Thanks in advance
p.s. any reading info available?
The value of the note is based on the value of the property and credit worthiness of the "Maker" of the note. The credit worthiness in especially important if you want to sell the note unseasoned.
The discount is driven by the investors yield requirements.
Typically you dont determine the discount - buyers bid their discounts. Value is based on equity in the house (the protection for the buyer of the note) and credit history of the person who owes on the note.
I agree with above and would add that if you structure the note with say a 5yr to 7yr balloon payment you will get a higher offer. This gives the note buyer more confidence that they will be taken out as that day approaches. The higher the interest rate you charge your buyer the higher the quote you will get back from note buyer. I broker notes so if you need any additional help just private message me I'd be glad to help anyway I can.
Mark