Note flipping. - Posted by David Thornberg

Posted by michael on January 03, 2007 at 19:14:45:

Usually its 5% of the total price of the deal plus any costs that you have incurred with the seller. Like the previous post/ Whats it worth to you???

Note flipping. - Posted by David Thornberg

Posted by David Thornberg on December 22, 2006 at 12:38:06:

I know there is nothing set in stone in anything we do in real estate and it is all in what is negotiated but here is my question. I am mainly in the RE brokerage business and came across a commercial note for sale for $4.1m and I knew there was a deal to be made. I have since found a buyer for that note. They are negotiating terms right now and the deal looks like it will be moving forward. I was asked what I wanted for my fee for putting the deal together and that is my question. What would be a fair number? For people that are doing it, do you use a percentage calculation or ? For you note buyers what would you pay on something like this ?

thank you

Re: Note flipping. - Posted by lukeNC

Posted by lukeNC on December 23, 2006 at 07:38:18:

it seems like that should have been discussed beforehand?

I have only sold 2 notes, keeping the rest for my own portfolio.

The two I sold, i had already determined what a suitable end buyers yield should be, and priced it accordingly. Then marketed the note at that price with that yield advertised.

But again, i’ve only sold two…maybe someone else will chime in.

If it were me, I don’t care what you make as long as I’m making around a 30% yield.