What is this note worth? Opinions Please - Posted by Morris

Posted by Dave(KC) on August 01, 2002 at 17:04:52:

PV = 42182.76
N = 24
PMT= 1000.00
I = 9%
FV (Balloon) = 24279.55

With 12 months seasoning, and the high credit rating… your note is much more marketable… but still not great because of the large first. You may be able to sell for around 38644.44 which gives the investor a 15% yeild.

You might also consider selling the final 23 payments… and keeping the balloon for yourself. But that is a whole different animal. Not hard to figure, but still different.

Again, take my outlook for what it is. Amateur status. I am basically answering for my own amusement and practice for the near future.

Hope it helps,
Dave(KC)

What is this note worth? Opinions Please - Posted by Morris

Posted by Morris on August 01, 2002 at 11:22:26:

Borrower fico 690 middle score

second position on four family in NYC (brooklyn) appraised at 525,000

5 Year Balloon note with 9% Interest per year.

First lien is 450,000

New note. what is it worth now, and what is it worth in 6 or 12 months when its seasoned if its paid on time?

I do not want to sell the note. I am looking for some opinions of current value of note.

Thanks!

Re: What is this note worth? Opinions Please - Posted by Dave(KC)

Posted by Dave(KC) on August 01, 2002 at 12:09:25:

You didn’t mention the face value of the note and have any payments been made. Also, what is the monthly payment?

Dave

Re: What is this note worth? Opinions Please - Posted by Morris

Posted by Morris on August 01, 2002 at 15:47:27:

Face value of note is 50,000.00

Monthly payment is 1,000.00 3 year balloon.
I can change the monthly payment, (probably, if i want a little more or a little less.)

no payments have been made yet.
thats whay i want current value and value if paid on time for 6 monbths or a year.

Its a 3 year balloon, not 5 year. (nt) - Posted by Morris

Posted by Morris on August 01, 2002 at 15:49:05:

nt

Here’s how I would look at it. - Posted by Dave(KC)

Posted by Dave(KC) on August 01, 2002 at 16:33:42:

PV = 50,000
N = 36
PMT= 1000.00
I = 9%
FV (Balloon) = 24279.55

Now as I see it (and mind you, I am still learning). Your LTV is 95.238%, which is very high, especially for a note in the second position. That, along with the fact that the first note is so high, you would be looking at a very very steep discount. The credit score is very good, but still seems like you would take a big hit because of the size of the first.

Sorry I don’t have an exact number for you… but my guess is around a 55-60% discount.

Hope some of the experience guys can give you a better answer. You may want to direct this to Mike Morrongiello. He is extremely experienced and very helpful.

Best of luck,
Dave(KC)

What would it be worth after 12 mo. seasoning? - Posted by Morris

Posted by Morris on August 01, 2002 at 16:44:00:

That’s now. what would it be worth after 12 mo. seasoning?