GREAT NOTE
- commercial/industrial property
- $1.6M sales price
- $1M down payment
- 36 month term
- interest only, balloon in 36 months
- 5.00% interest rate
- 9 payments made
- buyer is LLC, no credit check, no personal guarantee
- full appraisal came in at $1.6M
GOOD NOTE
- single family home, built 1970, remodeled, good condition
- buyer was renter for 24 months
- timely rental payments, proof provided
- 10% down payment
- 12% interest rate
- 180 month term
- 1 note payment made
- credit not great, but acceptable
- owner occupied
- appraisal came in a little below sales price
BAD NOTE
- single family home, built 1962, nice neighborhood
- buyer qualified for mortgage, but wanted lower payments
- seller and buyer are work colleagues, friends
- seller wanted to “help” his friend
- 10% down payment
- 0% note interest rate
- 360 month term
- 33 payments made
- credit acceptable
- appraisal came in above sales price
We purchased these notes. The final pricing was an internal give and take, trying to offset the bad with the good. Sellers were happy.
If you have a note you are thinking of selling, let’s get you an offer, maybe some options, and you can decide.