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Understanding what a note buyer looks for when making a note purchase can help you create a note that will not leave you feeling violated by a buyers offer.
There was a time when mortgage note buyers would purchase just about anything that came across their desk--Of course that was when my dog could qualify for a loan and buy a house.
In today's economic times this just like all things real estate has changed. If you intend on carrying paper on a property sale and are planning to later sell that note, you had better have at least some understanding of what a buyer will be looking for, and a general idea of how much discount you can expect to take. Otherwise you may end up like Many I've seen in the past few years, with a note you either cannot even sell, or one that is so heavily discounted you cannot achieve the goals you have set. Thus forcing you to hold the note for a period of time much longer than you've anticipated.
While this may not have a huge effect on some, for those counting on that cash whether it be to move onto their next deal or any other need you may have, this can be a killer.
Here at PSR Note-Ability I am more than willing to assist you with everything from deal structure and note creation, right through to the actual sale of your note. That is what a "Full Service" mortgage note company can do for you.
The following are just a few key factors you need to consider that will play a huge role in the sale of any mortgage note:
Interest Rate
Seasoning--How long you hold your note prior to selling
Reverse seasoning--How long you owned the property prior to the sale of it
Terms of the note--Length of payment, Balloons, etc
Your buyers credit score
Size of the down payment
All of these things done right can dramatically increase the value of your note.
Conversely just "One" done wrong could greatly effect the value of your note, possibly even rendering it unsellable.
Bring us your questions and I personally will be happy to assist you in every way I can.
Don't get caught holding a bad note, because you weren't prepared from the start.
Hello Friends,
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Sell Mortgage Note