would this deal fly - Posted by Don

Posted by Don(Miami) on December 31, 1998 at 16:43:10:

Thanks David,i guess this was the first valuable lesson to note brokering. i did know it but got fooled anyway.



would this deal fly - Posted by Don

Posted by Don on December 24, 1998 at 18:25:17:

just recently a friend of mine came to me with this “deal”. he know that i am interested in brokering real estate notes. i would like to know if the pro’s on this site feel this would fly.

$127,000 value of home
$95,000 note
$92000 balloon
10% rate
60 months
$75000 balance
$833.70 payments

what i suggested was to sell 30 payments to an an investor at a 15% roi . giving him $20749.90 in cash and 30 payments of $833.70
he keeps the ballon. i would appreciate any input i can get. and any questions i might miss to ask him on this “deal”.
i think he is testing me . i know he invest in real estate and i am hoping he will bring me real deals.
thanks in advance to all of you and i wish everyone a happy holiday season.



Re: would this deal fly - Posted by Bud Branstetter

Posted by Bud Branstetter on December 26, 1998 at 22:29:25:

Don, I’m not sure how realistic the deal is. When you can buy a partial you can do some fantastic things. With the cost of title insurance and appraisal there isn’t much profit for you. The question would be why would he only want 20K on this note at present. You will need to get a copy of the original closing documents. A credit report on the buyers would also be helpful. A history of payments is more helpful. Are you looking to broker them yourself?

Re: would this deal fly - Posted by Don(miami)

Posted by Don(miami) on December 28, 1998 at 18:11:49:

Thanks Bud for your response.yes i do plan on borkering notes my self. i think what i was looking for was of course profitability and if the ratios were right. i recently told my friend that inorder to work on his notes i need all the documention first so as not to waste my time and the others that i talk to about them. what do you estimate the closing cost and etc. would be on this note should it fly. and what did you see wrong other that the smal profit margin.
i appreciat any input you can give me


when brokering notes - Posted by David Alexander

Posted by David Alexander on December 29, 1998 at 21:07:17:

When brokering notes, one thing to try to do is to try
to get the original paperwork, for any deal as far as that goes that will keep them from shopping the notes around.

Good Luck,

David Alexander