Question for you all... - Posted by Yaphet_AL

Posted by Michael Morrongiello American Note on October 28, 1999 at 22:11:03:

There are many buyers of newly created paper. However as you have recognized the DEAL STRUCTURE is of paramount importance if the creative note funder is to assist all parties in the transaction.

A NEWLY created real estate secured note can be sold immediatly upon closing on the sale of the property. Some of the issues that would determine what the note is worth and its “cash value” today would be:

  1. How much cash you are going to be putting down as the buyer?

  2. What will the home appraise for “as is” and if work is needed “fixed up”?

  3. What is your employment history like and how stabil is it?

  4. How is your credit history ?

  5. What will be the actual terms contemplated for the note ? (interest rate, monthly payment, amortization term, balloon or no balloon payment, etc.)

With some detailed input & insight to these questions the creative note funder can many times achieve your desired results.

Click on the American Note banner ad above for more info on simultaneous closings or call us tollf free 800-659-2274

Michael Morrongiello
Operations Manager

Question for you all… - Posted by Yaphet_AL

Posted by Yaphet_AL on October 28, 1999 at 17:21:23:

Hello everyone!

I found a house with an assumable VA mortgage that Im looking to buy and live in. The only problem is that the sellers have about 50% of the value of the home in equity and want cash at the closing. I wanted to find a note buyer who would give me cash for an unseasoned note at the closing table so that I could give them their money. Does anyone see any problem with this technique and does anyone have any pointers about things to be carefull about when doing such a deal? Who would buy such a note? How much of a discount would I have to take? How could I fix this deal up to make it better for all involved? Im nowhere close to ready to purchase just yet, (read: I havent done all of my due diligence yet) but Im just trying to get ideas on how I could make this work. Thanks!