Note For Sale
Hello,
This is my first time selling a note so bear with me as I try to explain this situation. I am going to have a $100,000 note for sale in about 2 weeks. I am looking at selling this note shortly there after. The reason why it is going to be in two weeks is because I am flipping a property in which I have a buyer lined up at my closing. I am waiting to hear back from the attorney, but I am almost positive that it is going to be a simultaneous closing (I am keeping my fingers crossed). I know I can sell this note, but I don't know what is apropos as far as seasoning is concerned. What do investors look for in buying a note; excluding the obvious (discount).
Any comments would be greatly appreciated,
Matt
note buyer will look at likely the likelyhood of consistent payments, credit worthiness of borrower. And worse case scenario if they need to foreclose what the loan to value is on the property. Also if they are a junior (2nd or 3rd etc. position) they want to see how large the senior liens are. (they will have to reinstate or pay those off to prevent getting wiped out in case of default)
Prepayment issue is a factor as well, is there a penalty?
And of course discount & yield & length of time on the loan.
I hope this helps
Ellis