Resale Value For 2nd Mortgages
I am a small investor trying to put together a deal that will motivate the seller to accept my offer predicated on a 10%, Second Mortgage, interest only for possibly 5 years. I suspect this seller may actually need every penny to go into another home. I want to be able to SELL this idea. I am less concerned with my interest rate on the Second than getting the deal through. It would be helpful if I could offer a generous rate then expalin how he can unload it to get his cash. Complex question: What kind of rate doe I need to offer him that he has room to sell the loan, and how is that done? Thx
There are too many factors unanswered to answer your question completely. Here in Florida the rate I offer on a second is 11-12% no matter what there credit score is. The resale of a second note is considerably harder than a first as it is a secondary position. The higher interest rate and the creditworthiness of the person liable help considerably. You wont get 100%, especially unseasoned. If possible talk him into just holding the note. Make it a baloon note if that helps.
Good Luck,
Kyle
Thank you for the reply. When you say ballon 2nd, do you mean everything due at one time, or principle only? What are average length of time. I am looking longer than shorter in time to make my improvements. And lastly, should my seller not be in a position to carry back a second where does one look for outside investors in CA for a HI property? Thx
I own several mortgage notes. One first position note has balance of $9584.76, with 7%, seasoned note, WA state Mobile Home. Owner occupied, with 650+ credit score.
Paying $168.67/mon, balloon of $3329.23 on 4/15/2007. Payment is current, on-time payment each month.
Will consider any reasonable offer.
**Please See My Profile**
Thanks and regards
Taylor
[ Edited by tzhong on Date 07/06/2003 ]
Investors in Hawaii are plentiful, but if the deal is good enough I am sure anyone would buy it anywhere. If you email me what all you have I can ask around even if I am not interested. Just go to my profile and my email address will be listed. Include your phone number if there are any questions I may have.
Thanks,
Kyle
Thank you both for your interest and offers. However while I "learning" how I could make this deal work, a firm offer came in. The realtor thinks the offer will go through. I do intend to look for an opportunity on Maui. Thx again it's good to know that this BBS IS live and monitored by qualified participants.
BBS
Rubycat33 your showing your computer age! You don't hear BBS much anymore.