Note purchases - Posted by Rich

Posted by Ron Ohara on November 02, 2000 at 21:23:50:

In response, the question that was originally asked, if there were companies that would buy the security instrument concurrently with the sale. There are companies that will buy the security instrument concurrently with the sale of the property from Seller to Buyer. Again, everything would be subject to credit of buyer as well as appraised value of the subject property as well as the terms and conditions of the security instrument and whatever additional items required by the funder. As to the “flip”, I have to assume you are thinking of a Buyer of a property purchasing the subject property at a discounted price (property valued at an example of $100.000.00 and buying for $60,000.00), and that buyer thus trying to sell the same property concurrently at the appraised value of $100,000.00 by having the new buyer putting a little bit down and the Seller carrying back a large security instrument. A lot of funders are staying away from purchasing the security instrument because most Sellers cannot justify how a property valued at $100,000.00, buying for $60,000.00 and concurrently selling for $100,000.00. What I have come up against are as follows: 1) Funders want verifiable proof of the improvements on the subject property which raised the sale price from $60,000.00 to $100,000.00; 2) To the funders, purchasing the property at a discounted price due to distress sale or even an agreement to sell low, will not be acceptable to some funders. There are quite a bit more why they will not purchase these type of security instrument due to “flip” sales. Hope this helps.

Note purchases - Posted by Rich

Posted by Rich on October 26, 2000 at 18:58:41:

I started my own note business about 6 months ago. I have about $250,000 of my own money to use. I have bought for my own potfolio and also resold to institutional investors. Many of the institutional’s will not do simultaneous closings or flips. Who do I go to now if I do not want to hold and season the note. I can not find anyone who will do flips or table funding.

Re: Note purchases - Posted by Ron Ohara

Posted by Ron Ohara on October 27, 2000 at 02:03:15:

I have found several institutions who will do table fundings subject to the Security Instrument and the sale of the property meeting their criteria. As to “flips” most institutions are staying away from them unless the Seller of the Security Instrument can show definitive proof of improvements made to the subject property, which can show proof of the higher value to the property from the price you purchased the property for.

Re: Note purchases - Posted by J.P. Vaughan

Posted by J.P. Vaughan on October 26, 2000 at 23:56:07:

Hi Rich,

Try Colonial Financial Services. Call Jude Smith at
972-556-1200 ext 141 and please tell him I sent you.
Let us know how it works out for you…

JP

Re: Note purchases - Posted by Michael Morrongiello

Posted by Michael Morrongiello on October 26, 2000 at 23:26:32:

There are investors and then there are investors. Some investors what pretty much what are called “vanilla” type deals. Other investors are more flexible and willing to look at alternative structures, and what are sometimes referred to as a “Flavored” type deals.

Simultaneous closings, quick flips, low or no money down deals, etc. have high incidences of problems. This is why a lot of note investors are “gun shy”. Learn to seek out other note invetors who are more willing to work with the “flavored” type product(we like to think we fit this bill) as in reality this is the majority of what you will encounter in the marketplace anyway.

To your success,

Michael Morrongiello

Re: Note purchases - Posted by hgnyc

Posted by hgnyc on November 02, 2000 at 20:02:16:

How do you define “table funding” compared to “flip”?

Thanks