Any rehabbers note brokering? - Posted by Chris

Posted by jasonrei on October 08, 2003 at 23:54:35:

I’ve turned the numbers every which way. Yrs ago I brokered over a dozen notes (not that I’m an expert by any means, but I think that’s way more than most people who think they know what they’re talking about). Earlier this summer I was pretty desperate to get rid of a couple of my rehabs and I spent a lot of time crunching numbers, but selling on a note would have been too costly. If you can find an “A” buyer, which is what it takes to get a good price for your note, you’d both be better off if he/she went conventional.

I think you’re looking at a max 80% ITV from the note buyer. Someone might claim to go higher but I bet they’d be looking for an “A” buyer and that 85% would be for the whole note. Selling with notes might work, but I don’t think it’s a financing strategy to replace conventional, unless you deal with really low end houses and the note buyer uses an appraiser that dramatically inflates values.

That’s my 2 cents anyway.

Any rehabbers note brokering? - Posted by Chris

Posted by Chris on October 08, 2003 at 18:46:27:

Just sold my last rehab via FHA, the hoops and delays have me looking elsewhere. wondering if anyone has sold on a note, then sold the note? What kind of profit and discount on the note can I expect? How quick are closing times?