Writting Payback Agreement
Hi,
I am wanting to borrow money from family and friends but do not know how to write agreement.
for examaple; borrowing 10k for 12 months at 10%
how do i write the pay back agreement so they can see the payback schedule?
[ Edited by garcia888 on Date 10/01/2005 ]
I added up my escrow, interest and principle and they equal the payment amount of 545.56. They take that amount out first and then about a week later they take out PMI. It looks to me that they did not include the mortgage insurance in the payment, otherwise I would think the payment would be 589.24.
Thank you, does make total sense.
I would like to know the answer to this question as well. I am trying to get into the note buying bussiness. Please send me either a PM or to my email address at **Please See My Profile**
Thanks
Jason
yeah i just want to clarify, I dont HAVE any notes nor do I have a house up for sale, I just wanted to know what is considered a bad note
Years ago, I was a realtor in WA state and was involved as the listing and selling agent on several seller financed homes and land. I would call one of the largest note buyers in the country, Metropolitan Mortgage, which I assume they still are one of the largest unless they were bought out , to determine the terms that the seller should attempt to get from the buyer in order for him to sell his note at the best possible price after closing. Note: calling a couple of large companies ensures a competive bid versus the small local companies.
In order to minimize the discount that the note buyer will use to make an offer for the the note, follow these rules of thumb:
Shorter amortization is better
Amortized payments are better than interet only
Highest possible interest rate
Lowest possible loan-to-value (LTV)
Good credit of new property owner
Owner Occupied is better than rental property
At the time, seller finance rates were about 8% (2 points above retail rates), and note buyers wanted a yield of 10-12%. Its best to call a couple of major note buyers in advance with the scenario especially if you are the seller (or his/her real estate agent), and have an offer from a buyer, which you need to make a decision.
Thanks for the info
Metropolitan Mortgage went bankrupt a couple of years ago. Tens of millions of dollars in losses.
My note buyers are looking for solid credit (600+), residences attached to the land (mobiles ok if on a foundation, but they depreciate pretty rapidly), some seasoning helps and a decent LTV. 2nds are hard to sell in my range of deals.
A good LTV and solid payment history can more than make up for a subpar credit score.
Mark Baker[ Edited by MarkBOhio on Date 10/04/2005 ]
yeah so if one were to hold the note for 2 years it could help establish a good payment history and help sell the note.