Note Buyer(s) Needed for Potential Portfolio of Properties in MD

[Candace Noel]

Hi everyone! I'm looking to potentially buy 4 properties (owned by one investor). He's selling them for $170k and says he has a loan of approximately $100k on them. All of the properties are turnkey (recently renovated) and have tenants with property management in place. I offered 20% down and a rate of 5.25% over 30 years. He wants the cash so that he can pay off the loan(s). 

Side note: The owner will have 6 more properties that he needs to sell. 

My questions are:

1. How do I find note buyers? Is there a database?
2. How do I setup an attractive note that note buyers would actually want to purchase? 
3. Will note buyers require a significant discount to buy a performing note?
4. How long does it need to be seasoned before the note can be sold?

Thanks for any help/tips that you may be able to provide.

[Odie Ayaga]

I'm assuming the missing piece of information here is that the owner is willing to seller finance the 4 properties to you at the terms you provided and that you are telling him that he will be able to sell the note at some later date because he doesn't want to carry it to full term. 

1. There is no database. There are note buyers everywhere. Someone doesn't need to already be a note buyer to be willing to buy the note if it's performing. You might have a friend in a high paying job who you could explain it to that might be interested. Or you could post here in the marketplace or sell to a company like FNAC.

2. Shorter term notes with higher interest and the borrower shouldering a large chunk of equity and good pay history tend to be more valuable.

3. I have heard of notes that sell for 100% of value. Not common buy possible. Typically most performing notes I would expect to sell at 70-85% of the unpaid balance.

4. Typically 12 months is used as the standard, but there are ways to sell sooner depending on what resources you have available to you.