The 1st quarter of 2015 has just ended. In my 8 years in the note business, this has been – by far – the best and most productive start for my business, and for some of my colleagues as well.
This is a good time for note sellers, note buyers and note brokers. Many sellers who have created notes in the past year or two have done a good job in structuring terms that protect them from potential default. At the same time, these notes are attractive to note buyers who are willing to pay competitive prices, allowing the note seller to get the cash he needs or wants for other investment, debt reduction, etc.
One of the more interesting facts to me is the type of properties securing the note purchases I have been involved with year to date. They run the gamut – single family homes, manufactured homes, commercial property, raw land, residential land, farm land, etc. The market place is such that buyers are willing to purchase a note secured by land, for example, that they would not purchase a few years ago. If you as a seller are selling a property for an “at market price”, with a good down payment, reasonable interest rate and amortized schedule, you will find a buyer willing to give you a competitive price for your note.
What is also helping is data supplied by Advanced Seller Data Services, which shows a continued annual rise in the number of owner carry transactions across the country. The increase was only 4.7% in 2014 over 2013, but we have had increases every year since the recovery started in 2009.
If you are holding a note and have a need or want for cash, now is a good time to see how the marketplace would price your note. Call me and I will do my best to help you if I can.
