discounted mortgages - Posted by jim rolquin

import · March 17, 2002, 8:14am

Posted by jim rolquin on March 18, 2002 at 12:05:23:

jon - thanks for your input
jim

import · March 17, 2002, 8:14am

Posted by jim rolquin on March 17, 2002 at 09:14:06:

I have currently just signed a contract to purchase 12 discounted mortgages from one individual whom holds the paper.

I was wondering what kind of financing is available for this type of purchase.
I’ve been offered 7 3/4, 3 year fixed from a bank w/20%down.

would appreciate any comments.

jim rolquin - north carolina

import · March 17, 2002, 2:01pm

Re: discounted mortgages - Posted by Jon Richards

Posted by Jon Richards on March 17, 2002 at 15:01:24:

Jim
It is not clear what you are asking. 1. Are you buying them to yield you 7.75%?. 2. What do you want to do with these mortgages after you own them? 3. When you say: “financing” are you talking about hypothecating them?

Be glad to answer if you can clarify what you are trying to do.

Jon Richards
NoteWorthy Newsletter
415 824 1864

import · March 17, 2002, 3:05pm

Re: discounted mortgages - Posted by jim rolquin

Posted by jim rolquin on March 17, 2002 at 16:05:53:

hi Jon - thanks for the reply. Sorry but this deal is a first for me so I’ll try and walk you through.
we are under contract to purchase 12 promissory notes each on land in n.c. All were 100% owner financed. Some are new and several are a few years old. The weighted average is 15 years. We are buying them at a 30% discount The amount of the purchase is 333k
the notes are at 9%
We are looking to finance this purchase.
we already have a commitment from a bank @7.34% 3year refinance. Is there anyone out there that will be interested w/ a better rate w/ longer terms?
I hope this helps. If you have any additional questions, please e-mail back.
thanks again for your interest.
jim

import · March 18, 2002, 9:28am

Re: discounted mortgages - Posted by Jon Richards

Posted by Jon Richards on March 18, 2002 at 10:28:36:

Jim
I think I can safely say no one else will buy your notes to yield only 7.34%. It doesn’t sound possible, because that means they must be paying a premium for those written at more that 7.34%.

Congratulations, you have a great buyer.

Jon Richards
NoteWorthy