At a recent Note Industry Conference, an experienced note buyer stood in front of 500 attendees and asked: “Who extends credit to someone for 10-30 years without knowing much about them?”
The answer : “lots of people.”
Too many folks sell a property, agree to carry a note and don’t make the effort to strengthen their decision by getting to know who they will be dealing with for years to come. Carrying a note is a business decision and should be treated as such. How long has my buyer lived in the area? Does he have extended family in the area? What does he do for a living and how long has he been at his present job? What is his monthly income? Debt burden? What is his credit score and credit history? Who will be living in the property with him? Does his history indicate he is a responsible and trustworthy person? Does he exhibit pride in his personal appearance, condition of his car, etc?
Know your buyer before you tie yourself to him for the next 30 years!
