How Much To Offer For A Note?
Does anyone have a formula for what to offer for a note? Last year I bought a 2nd note from BankOne instead of doing a short sale. The loss mit. rep. said she could make me a better deal on it if I bought the note. So I bought the $24.5K 2nd for $3K and brought the 1st current and took it over Subject To. That worked!
Now, I have another homeowner who has a $83K 2nd with BankOne, but his 1st is paid off. Do you think I could anticipate as good a discount since it's the only lien? The ARV is about $150K and it needs over $100K of work. I'm trying to figure out what to offer. If anyone has any experience with BankOne, or any formulas to suggest I use, I'd appreciate it.
Thanks!
Theoretically a short sale and the purchase of a note at a discount are exactly the same financial calculation just different structures to the same number. Given $100k in rehab I wouldn't offer a lot here-- maybe $10k.
Technically if the first is paid of and released then Bank One's second is now a first. But again, it doesn't make that much difference.
Wow, I agree with Commercial King with that amount of rehab work I would not
offer much more than $10K.
[addsig]