Note Investing

Then, here are some factors that affect the value of your note.

1. Collateral: The best collateral is an owner occupied single family residence. In descending order, here is the list.

SFR owner occupied.
SFR non-owner occupied.
Small multi-family properties, five (5) units or more.
Apartment buildings.
Single purpose commercial buildings.
Multi-purpose commercial buildings.
Vacant Land.

2. Down Payment: The greater the amount paid down, the better the note. We buy "nothing down" deals, but they are not worth as much as a note with a substantial down payment.

3. Seasoning: Any note less than one year old is considered a "green" note. A note where twelve (12), or more, payments have been made has more value.

4. Interest Rate: The higher the rate on the note; the more it is worth. The reverse is true.

5. Term: The longer the note; the less it is worth. The reverse is true.

6. Maker's Credit: Most notes are created because the buyer has damaged credit. We understand this, but credit is still a factor. In any event, we are more interested in the collateral than the credit.

We think of note buying as a financial service. If you are considering selling a real estate lien note, or any type of cash flow, call us. While we try and make a profit buying notes, we are interested in assisting you with your financial difficulties.

Call me, Henry Dvorken, at 940-322-5291 to discuss how we can help you.